Is the purchase tax halved for 1.4T displacement vehicles?
2 Answers
Starting from July 1, 2019, the vehicle purchase tax rate is 10%, so the concept of a halved purchase tax for car purchases no longer exists after 2019. Below are the characteristics and taxable subjects of the vehicle purchase tax: Characteristics of vehicle purchase tax: The scope of taxation is singular. As a property tax, the vehicle purchase tax is levied on specific purchased vehicles as taxable objects, rather than on all properties or consumer properties. Its narrow scope makes it a special property tax. The tax rate is singular. The vehicle purchase tax is levied at a unified proportional rate, which does not vary with the amount of the taxable object. This makes the tax calculation simple, the burden stable, and facilitates tax administration according to law. Taxable subjects of vehicle purchase tax: The vehicle purchase tax takes listed vehicles as taxable objects, and unlisted vehicles are not subject to taxation. Its taxable scope includes cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles.
I heard the government often introduces policies to encourage the purchase of small-displacement vehicles, such as halving the purchase tax for engines below 1.6 liters. A 1.4T displacement is roughly equivalent to 1.4 liters and is usually included. For example, back in 2022, there was such a regulation, which saved a lot of money. However, these policies aren't available every year and can be adjusted at any time, so you should check the latest official announcements for accurate information. When buying a car, it's best to confirm with the 4S store salesperson—don't just rely on advertisements. Small-displacement cars also save on fuel costs, making them eco-friendly and economical. If the policy expires, you might end up paying an extra ten thousand yuan, so I suggest taking advantage of the discount early and not hesitating.
