Is Tesla Exempt from Purchase Tax?

[DelilahLee]

On September 2, 2019, the Ministry of Industry and Information Technology announced that Tesla would be exempt from purchase tax, attracting widespread attention. Specifically, three models—Model 3, Model S, and Model X—were included in the purchase tax exemption catalog. Below is an introduction to vehicle purchase tax: 1. Limited Scope of Taxation: As a property tax, vehicle purchase tax applies only to specific purchased vehicles rather than all properties or consumer goods, making it a narrow-scoped special property tax. 2. Single Taxation Stage: Vehicle purchase tax is levied only once, not at every stage of production, operation, or consumption, but specifically when the vehicle exits circulation and enters the consumer market. 3. Fixed Tax Rate: Vehicle purchase tax is calculated at a uniform rate, which remains unchanged regardless of the taxable amount. This simplifies tax assessment, ensures stable tax burdens, and facilitates tax law enforcement.