How is the vehicle purchase tax calculated?

[SanValentina]

Automobile purchase tax payable is calculated using the formula: Tax payable = Taxable price × Tax rate (if the taxable price is lower than the minimum taxable price issued by the State Taxation Administration, the minimum taxable price stipulated by the State Taxation Administration shall be applied). Below is an introduction to the vehicle purchase tax: 1. Introduction: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China, evolving from the vehicle purchase surcharge. 2. Formula: The calculation formula is: Tax payable = Taxable price × Tax rate. 3. Purpose: By imposing the vehicle purchase tax, the state participates in the redistribution of national income, better converting a portion of consumption funds into fiscal funds, thereby raising more funds for the state to meet the needs of exercising its functions.