Are Luxury Car Tax and Purchase Tax Separate?

[MicahFitz]

Luxury car tax and purchase tax are separate. Here are the relevant details: 1. Value-added tax: The 'luxury cars' category added under the 'passenger cars' tax item mainly covers passenger vehicles and light to medium commercial buses. This fee does not include value-added tax. For ultra-luxury cars, consumption tax is levied at the current rate during import and export, and an additional 10% consumption tax is imposed at the retail stage. 2. Consumption tax: Entities or individuals selling ultra-luxury cars to consumers are the taxpayers for the retail stage consumption tax. The taxable amount for the retail stage consumption tax on ultra-luxury cars is calculated by multiplying the retail stage sales amount by the retail stage tax rate.

[McMadeline]

I remember when I bought that luxury car last year, I specifically researched these tax issues. The purchase tax is levied at 10% of the car's purchase price, applicable to all vehicles, while the luxury car tax is an additional consumption tax imposed only on high-displacement luxury cars, such as those exceeding 4.0L. They are calculated separately, not combined. When purchasing the car, the salesperson itemized the purchase tax invoice and the luxury car tax declaration, so I clearly saw two different amounts when paying, with no confusion. I think the government does this to balance fairness, allowing those who buy economical cars to save a bit, while those who buy luxury cars contribute more. This even affects my car selection now—when I'm interested in a car, I first check the displacement standards to avoid the combined taxes being too high and hurting my wallet. In short, the separate collection is quite understandable, as long as the salesperson doesn't try to confuse you.

[AnthonyRose]

From my experience, the luxury car tax and purchase tax are completely separate and not the same thing. The purchase tax is calculated based on the vehicle's ex-factory price, at a fixed rate of about 10%, which all vehicles must pay as a basic tax. The luxury car tax, on the other hand, is an additional luxury tax imposed only when the vehicle's displacement exceeds certain limits, such as over 2.0L, and is levied separately. When I changed cars, I noticed that they are displayed separately in the payment system, and dealers issue separate invoices, so they are definitely not combined. The underlying reason is likely policy regulation, aimed at controlling luxury car consumption and promoting environmental protection. This separation gives me more flexibility in choosing a car, allowing me to prioritize smaller displacement vehicles to avoid taxes and save money. I recommend checking the local tax rate table before buying a car and budgeting in advance to avoid surprise bills.

[DiMason]

As a car newbie, when I bought my luxury car last year, I was worried about taxes getting mixed up. The salesperson later explained that the purchase tax and luxury car tax are separate. The purchase tax is paid by everyone at the same rate, while the luxury car tax is an additional charge only for specific models, with the two calculated independently. At payment, I saw separate items on the bill, which was quite clear. This separation made the process less complicated, and luckily I chose a smaller engine configuration to save on extra fees. Now I understand better – it's essential to ask about the separation details when buying a car.