What is the displacement threshold for motorcycle purchase tax?
3 Answers
Motorcycles with an engine displacement exceeding 150cc are required to pay a purchase tax equivalent to 10% of the motorcycle's price. Definition of purchase tax: Purchase tax is a levy imposed by tax authorities on specified goods and properties within the taxation framework, such as vehicle purchase tax. Vehicle purchase tax is a tax levied on entities and individuals purchasing designated vehicles within China's territory, which evolved from the vehicle purchase surcharge. Used vehicles are tax-exempt: Vehicles only need to pay purchase tax once, typically when purchased as new. In other words, used vehicles don't require purchase tax payment. However, if purchase tax wasn't paid during the initial new vehicle purchase, the new owner must settle the outstanding tax when acquiring the used vehicle.
In China, the motorcycle purchase tax policy is as follows: only models with an engine displacement above 150cc are required to pay the purchase tax. To be more specific, motorcycles with 150cc or below are usually completely tax-exempt, which is aimed at encouraging the use of more environmentally friendly small vehicles. I remember a few years ago when I helped a friend buy a motorcycle, we realized that engine displacement was the key factor—motorcycles below 150cc saved a significant amount in taxes directly from the price. The tax rate is generally 10% of the vehicle's invoice price, so buying a high-displacement motorcycle means spending more. Of course, this policy is designed to promote green travel and reduce air pollution. When buying a motorcycle, it's best to pay attention to the displacement specifications, especially if you're on a tight budget—choosing a small-displacement model can really save you a lot of money. Additionally, there might be slight differences in tax policies across different regions, so it's advisable to check official information or consult the local vehicle management office to avoid misunderstandings.
I found many people have misunderstandings about motorcycle purchase tax, thinking that taxes apply regardless of engine displacement, but that's not the case. Motorcycles with an engine displacement below 150cc are tax-exempt, including those light urban commuter bikes, making them hassle-free and cost-effective to purchase. Only models above 150cc are subject to the 10% tax. For example, my neighbor recently bought a new motorcycle without noticing its 180cc displacement, and ended up with thousands extra in taxes on the invoice—much to their regret. I recommend everyone carefully check the manual and displacement data when selecting a bike, and not just rely on sales talk. Additionally, the tax exemption policy aims to promote low-emission transportation and reduce environmental pollution, which is especially important in congested cities. Comparing displacement options before buying can help avoid unnecessary expenses.
