What is the vehicle purchase tax?

[SanAlex]

The purchase tax for passenger vehicles with an engine displacement of 1.6L or below is levied at a reduced rate of 7.5%. Below is more information: 1. Introduction: The vehicle purchase tax is a tax levied on entities and individuals who purchase specified vehicles within China. All entities and individuals who purchase, import, produce, receive as gifts, win as prizes, or otherwise acquire vehicles for personal use must pay the tax at a rate of 10%. However, the tax is not levied again when the vehicle changes ownership until the vehicle is scrapped. 2. Tax payment location: For taxable vehicles that require registration, the tax should be declared and paid to the competent national tax authority in the vehicle registration location. For taxable vehicles that do not require registration, the tax should be declared and paid to the competent national tax authority in the taxpayer's location.