June 29 2022

MOF and STA Unveil Policy on Reduction of Tax on Purchase of Selected Passenger Vehicles

Source: Announcement of the State Administration of Taxation

As a response to the requirement for reduction of vehicle purchase tax for passenger vehicles under certain displacement imposed in the Announcement of the State Council on Adopting a Package of Policy Measures to Stabilize Economic Performance released on May 31, 2022, the Ministry of Finance ("MOF") and the State Administration of Taxation jointly released the Announcement on Reduction of Tax for Purchase of Selected Passenger Vehicles (Announcement (2022) No.20 of the MOF and the STA).

It is clarified that the vehicle purchase tax can be halved for purchase of passenger vehicles in displacement of 2.0-liter or below during the period from June 1, 2022 to December 31, 2022 at a unit price (excluding VAT) of not exceeding 300,000 yuan, and the passenger vehicles refer to vehicles designed to carry passengers and their carry-on luggage and/or temporary goods, with seats of no more than nine, including the driver's seat.

Reference: http://szs.mof.gov.cn/zhengcefabu/202205/t20220531_3814723.htm