What is the purchase tax for a 1.4L displacement car?
2 Answers
1.4L displacement car purchase tax payable amount = taxable price * 10%. Here is more information about the taxable price: 1. 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. Starting from January 1, 2018, the purchase tax rate for consumers buying passenger vehicles with 1.6L or below displacement has been restored to 10%. Before this, the purchase tax rate was 7.5%.
Last year I bought a car with a 1.4L engine displacement. The vehicle purchase tax isn't calculated directly based on displacement - the tax rate is uniformly 10%. The specific tax amount depends on the ex-factory price of your car. For example, my car cost about 120,000 yuan before taxes. After deducting the 13% VAT, the taxable portion was approximately 106,200 yuan, so I paid 10,620 yuan in tax. Policy-wise, there used to be preferential policies for small-displacement vehicles before 2023, but they're basically gone now. I recommend consulting with sales to calculate the tax before purchasing and budgeting accordingly - don't just focus on engine displacement. Since vehicle prices vary significantly, tax differences of several thousand yuan for the same displacement are normal.