What is included in the 2020 displacement tax rate table?
2 Answers
The following is the content introduction of the 2020 displacement tax rate table: Below 1.0L: The tax rate for displacement less than 1.0L is 3%. 1.0-2.2L: The tax rate for displacement from 1.0L (inclusive) to 2.2L is 5%. 2.2-3.0L: The tax rate for displacement from 2.2L (inclusive) to 3.0L is 9%. 3.0-4.0L: The tax rate for displacement from 3.0L (inclusive) to 4.0L is 14%. Above 4.0L: A 20% consumption tax is levied for displacement of 4.0L (inclusive) and above.
Speaking of the 2020 displacement tax rate table, as a seasoned driver, I know this matter well. That tax actually refers to the consumption tax, which is levied in tiers: 1% for displacements below 1.0 liters, 3% for 1.0 to 1.5 liters, 5% for 1.5 to 2.0 liters, 9% for 2.0 to 2.5 liters, 12% for 2.5 to 3.0 liters, 25% for 3.0 to 4.0 liters, and 40% for displacements above 4.0 liters. This standard has remained unchanged since 2016. Manufacturers include this cost in the car price before selling, so the price consumers see already includes it. I recommend checking the displacement tier before buying a car. Choosing a smaller displacement car is much more cost-effective. For example, in 2020, selecting a 1.5-liter sedan would only incur a 3% consumption tax, saving you thousands compared to the 25% or more for larger displacements. The purchase tax at that time was a fixed 10%, unrelated to displacement. This tiered tax design aims to encourage environmental protection and fuel efficiency. I've known since my younger driving days that tax tables can change significantly, but 2020 was relatively stable. Remembering it can help you make wise choices.
