What is the purchase tax for a 1.4L displacement car?
2 Answers
1.4L displacement car purchase tax payable amount = taxable price * 10%. Below is more information about the taxable price: 1. Introduction: Purchase tax is a tax levied by tax authorities on the acquisition of specified properties and assets within the scope of the purchase tax system, such as vehicle purchase tax. Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China, which evolved from the vehicle purchase surcharge. 2. Implementation: Starting from January 1, 2018, consumers purchasing passenger vehicles with 1.6L or smaller displacement will be subject to a 10% tax rate. Before this, the purchase tax rate was 7.5%.
Actually, the purchase tax for a 1.4L displacement car is usually around 10% of the car's price, which is a unified standard in China. The tax rate is not affected by the engine size. Last year when I bought a car, I came across a 1.4L model priced at 120,000 yuan, and the tax came out to 12,000 yuan. The salesperson will calculate it for you based on the invoice price, with the pre-tax price as the basis. So, it's more accurate to ask for the ex-factory price before purchasing. Some regions may have local subsidies, but overall, the difference is not significant. A 1.4L displacement is not too small, and the driving experience is decent—it's fuel-efficient, but the one-time tax payment is still an expense. Make sure to budget enough for the tax; otherwise, it can be quite awkward if you're short on cash when picking up the car. My advice is to bring some extra emergency funds and try to negotiate flexible payment options for the tax with the dealer.
