What taxes are levied on imported cars?
2 Answers
Imported cars are subject to customs duty, consumption tax, value-added tax, and clearance fees. The specific details are as follows: Customs Duty: For engines with a displacement below 3 liters (excluding 3 liters), the tax rate is 34.2%, and for those above 3 liters, it is 37.6%; the payable customs duty is calculated as: declared price * customs duty rate. Consumption Tax: For engines with a displacement below 1.0 liters, the tax rate is 3%, and for those between 1.0 and 2.2 liters, it is 8%; the payable consumption tax is calculated as: (declared price + customs duty) / (1 - consumption tax rate) * consumption tax rate. Value-Added Tax: The tax rate is 17%; the payable value-added tax is calculated as: (declared price + customs duty + consumption tax) * 17%. Clearance Fees: 10% dealer fees: other costs (such as fees caused by non-tariff measures like import licenses). For example, for an imported car with a declared price of 100,000 RMB, the customs duty (calculated at 34.2%) would be 34,200 RMB, the consumption tax (calculated at 5%) would be 7,100 RMB; the value-added tax would be 24,000 RMB; the total tax-inclusive price would be 165,300 RMB; the market price would be approximately 200,000 RMB.
Imported cars are subject to several taxes, with customs duty being the major one. The tariff rate depends on the vehicle's country of origin—for example, U.S. cars may range from 10% to 25%. VAT is generally 13%, applicable to both imported and domestically produced vehicles. Consumption tax varies by engine displacement: small-displacement engines may incur 1%, while those exceeding 4.0L face 40%, which can double the total car price. I once bought an imported SUV where taxes alone added 200,000 RMB, plus a 10% purchase tax paid after delivery. If you're considering a purchase, check customs announcements in advance. Choosing cars imported through free trade zones can save money; otherwise, domestic models may offer better value. In short, these taxes significantly impact pricing—consult dealers or check online for policy updates.
