Is Purchase Tax Required for Licensing a 125cc Motorcycle?

1 Answers
HaileyLee
07/29/25 10:57pm
125cc motorcycles require payment of purchase tax for licensing, typically around 10% of the vehicle's pre-tax price. Below is relevant information about vehicle purchase tax: Introduction: Vehicle purchase tax is a levy imposed on entities and individuals purchasing designated vehicles within the country, evolving from the vehicle purchase surcharge. This tax is ad valorem based on the taxable vehicle's dutiable value, using price as the taxation standard - directly linking taxation to value (higher-value vehicles incur higher taxes, lower-value vehicles less). Characteristics: Vehicle purchase tax applies a single uniform tax rate that doesn't fluctuate with the taxable amount, featuring simple calculation methods and stable burdens, which facilitates tax administration by law. It follows a single-collection system, only imposed when vehicles exit circulation and enter the consumption phase.
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