What is the vehicle displacement tax standard?
2 Answers
Vehicle displacement tax standard is below 1.0L. Here are some introductions about vehicle displacement tax standards: 1. Vehicle displacement tax standards: Displacement below 1.0L (including 1.0L): 1%. Displacement above 1.0L to 1.5L (including 1.5L): 3%. 2. Notice: The automobile consumption tax policy increases the consumption tax rate for large-displacement passenger vehicles and reduces the consumption tax rate for small-displacement passenger vehicles. The better the vehicle's performance, the larger the displacement, and the more displacement tax needs to be paid. When purchasing a vehicle, in addition to checking the original price of the car, you must also calculate the vehicle's displacement tax.
I recently bought a car and have some insights about displacement-related taxes. Simply put, China's automotive displacement tax standard means higher taxes for larger engine displacements, mainly consisting of purchase tax and vehicle and vessel tax. The purchase tax is 10% of the car's price, but if you choose a small-displacement car below 1.6 liters, the purchase tax can be halved or even lower, saving you thousands. The vehicle and vessel tax is tiered by displacement—for example, my friend's 1.0-liter car pays only around 300 yuan a year, but for cars over 3.0 liters, the tax can reach four or five thousand, which is really expensive. This standard is designed to encourage the purchase of energy-efficient and environmentally friendly cars, saving fuel and money in the long run. I chose a 1.5-liter car, which saved me a lot on taxes and still drives smoothly. The government also keeps promoting new energy vehicles, which are tax-exempt, and might impose stricter policies on high-displacement cars in the future. I think opting for a small-displacement car now is a smart move.
