Highest special consumption tax of 75% on autos proposed
Highest special consumption tax of 75% on autos proposed
Under-nine-seat autos whose engine capacity is over three liters may be subject to a special consumption tax rate of up to 75%, according to the special consumption tax rates proposed by the Ministry of Finance.
The current three tax rates for cars of nine seats are 45% for two-liter models, 50% for two- to three-liter models and 60% for models of over three liters.
With the draft document, the ministry categorizes autos by engine and seeks a tax hike roadmap. The highest proposed tax is 75% instead of 195% the ministry planned for cars of over six liters early this year.
In particular, with plan one, autos with engines lower than 1,500 cubic centimeters would be divided into two groups of under 1,000 cubic centimeters and 1,000-1,500 cubic centimeters.
The tax rate for the first auto group would be 25%, down 20 percentage points from the current level from July 1, 2016 and 20% from 2018. The second group would be charged with a tax rate of 30%, down 15 percentage points, and 25% from next July and 2018 respectively.
Plan two envisages under-1,500-cubic-centimeter autos would be subject to a common rate of 30%, a drop of 15 percentage points.
Meanwhile, autos with engine capacity of 1,500-2,000 cubic centimeters, 2,000-3,000 cubic centimeters and over 3,000 cubic centimeters would have tariffs of 40% (down five percentage points), 60% (up ten percentage points) and 75% (up 15 percentage points) as from next July respectively and 30%, 55% and 70% from 2018.
