China will lower the consumption tax threshold for super luxury cars from CNY 1.3 million to CNY 900,000.
China’s Ministry of Finance and State Taxation Administration will lower the consumption tax threshold for super luxury cars from CNY 1.3 million to CNY 900,000, starting 20 July 2025.
This adjustment expands the scope of vehicles subject to a 10% consumption tax, now including a broader range of luxury and imported cars.
However, second-hand luxury car sales remain exempt from this tax.
New energy vehicles, such as battery-electric and hydrogen fuel-cell cars, will also be included under the levy, whereas used vehicles will continue to be exempt.
China imposes a consumption tax on alcohol, cars, oil, tobacco, and 11 other product categories to discourage luxury and high‑pollution consumption while supporting government revenue.
