CCTV News: According to the website of the Ministry of Finance, on July 17, the Ministry of Finance and the State Administration of Taxation issued an announcement that in order to further guide reasonable consumption, with the approval of the State Council, the following announcements are now made on matters related to the consumption tax policy of super luxury cars:

1. "Notice of the Ministry of Finance and the State Administration of Taxation on Matters Related to the Extra Consumption Tax on Super Luxury Cars" (Finance and Taxation [2016] No. 129) Article 1 The scope of collection of Chinese Super League luxury cars is adjusted to "passenger cars and medium- and light commercial passenger cars with retail prices of 900,000 yuan (excluding value-added tax) and above (including power types such as pure electric, fuel cells, etc.). The scope of collection of consumption tax for the import link of ultra-luxury cars as stipulated in the Ministry of Finance and the State Administration of Taxation on Adjusting the Consumption Tax in the Import Link of Automobile (Caiguanshi [2016] No. 63) is adjusted accordingly.

Ultra-luxury cars without cylinder capacity (discharge) such as pure electric and fuel cells will only be levied on consumption tax in the retail stage.

2. No consumption tax is imposed on taxpayers when selling second-hand super luxury cars. The used cars referred to in this announcement refer to vehicles that conduct transactions and transfer ownership before completing the registration procedures to meeting the national mandatory scrapping standards.

3. The retail sales in Article 3 of the Ministry of Finance and the State Administration of Taxation on Matters Related to Issuing Consumption Tax on Super Luxury Cars (Finance and Taxation [2016] No. 129) refers to the entire price and extra-price fees charged by the taxpayer to the purchaser for car purchases, including the price collected in the name of fine products, accessories and services.

4. The above provisions of Articles 1 and 2 will be implemented from July 20, 2025.