What is the Consumption Tax on Imported Cars?

[Henry]

Consumption tax is determined based on the vehicle's price and engine displacement. Below is a detailed introduction to the consumption tax on imported cars: 1. Detailed calculation method: Consumption tax is determined based on the vehicle's price and engine displacement. The formula for calculating consumption tax is: Consumption Tax = (Declared Customs Value + Customs Duty) ÷ (1 - Consumption Tax Rate) * Consumption Tax Rate. The consumption tax rate ranges from 0% to 40%, divided into 8 tiers, and the consumption tax rate is directly proportional to the engine displacement. 2. Overview of customs duty: Customs duty refers to the tax levied by the customs authorities set up by the government on importers and exporters when goods pass through a country's customs territory. In most countries, customs duty is generally a high-level tax with rates specified by the highest administrative unit. For countries with developed foreign trade, customs duty often constitutes a major source of national tax revenue and even national finance.