How much tax is required for a 120,000 yuan car?
2 Answers
10,256 yuan. National taxation aims to regulate and supervise the economy. 1. Economic regulation: By leveraging state coercive power to participate in social distribution, the government inevitably alters the share of national income allocated to various social groups and their members, reducing their disposable income. However, this reduction is not uniform, and the resulting gains and losses will influence taxpayers' economic activities and behaviors, thereby impacting the socio-economic structure. 2. Economic supervision: In the process of revenue collection, the state must establish a foundation of daily, thorough, and meticulous tax management. This involves identifying tax sources, understanding situations, detecting issues, supervising taxpayers to comply with tax laws, and combating violations of tax regulations. Through these measures, the state oversees the direction of socio-economic activities and maintains social order.
Last time we talked about cars, I realized taxes are quite important when buying a 120,000 RMB vehicle, especially the purchase tax being the major part. In China, the new vehicle purchase tax is generally calculated at around 10% of the car price. Assuming 120,000 RMB is the invoice price including VAT but excluding discounts, the calculation would be roughly the purchase price divided by 1.17 and then multiplied by 10%, resulting in about 10,256 RMB. The reason for dividing by 1.17 is to exclude the VAT base for fairness, as stipulated by the tax authorities. Besides the purchase tax, there's also the annual vehicle and vessel tax, ranging from 300 to 500 RMB depending on the model and engine displacement, with significant variations between provinces—smaller provinces might pay less. Additionally, if you buy a new energy vehicle, such as a pure electric car, current policies exempt you from taxes, saving over 10,000 RMB, whereas choosing a fuel-powered vehicle means paying the full amount. I recommend asking the dealer for details before purchasing and budgeting an extra 15% for related costs—don’t just look at the sticker price, or you might end up paying more than expected. The total tax expenditure is influenced by factors like the vehicle model, age, and local policies, such as potential rate increases for high-displacement vehicles. To save money, opting for a small-displacement or green-plate vehicle is the most cost-effective choice.
