Do 125cc motorcycles require purchase tax?
2 Answers
Motorcycles with an engine displacement exceeding 150cc are subject to purchase tax. 125cc motorcycles do not require purchase tax. Below are specific details regarding vehicle purchase tax: Calculation formula: Purchase tax = Total vehicle price ÷ (1 + 13%) × 10%. Content: Vehicle purchase tax is a tax levied on units and individuals purchasing specified vehicles within China. Tax basis: Vehicle purchase tax is calculated using an ad valorem rate method with tax collected outside the price, making the taxable vehicle's price (i.e., the tax calculation price) the basis for vehicle purchase tax.
I recently bought a 125cc motorcycle. Before purchasing, I was quite worried about paying the purchase tax, but the staff at the 4S store told me that small-displacement vehicles like this are generally exempt. According to national policy, motorcycles under 150cc are exempt from purchase tax, so a 125cc is completely fine. The money I saved allowed me to buy a good helmet and protective gear. However, I should remind everyone that policy implementation may vary slightly by location—some small towns might have additional fees. In short, just bring your ID and payment when buying the bike; taxes are basically not a concern. Plus, small-displacement bikes are very fuel-efficient, making them cost-effective for daily commuting.
