On July 17, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Adjusting the Consumption Tax Policy for Super Luxury Cars”. After the adjustment, the scope of levy for ultra-luxury cars is “passenger cars of various power types and medium and light commercial buses with a retail price of 900,000 yuan or more per vehicle”. The policy will be implemented on July 20. Industry insiders said that models that originally “stuck” at the price threshold, such as the Mercedes-Benz S480, Land Rover Range Rover Shengshi Edition, and the Porsche Cayenne/Paramela basic model, have been directly impacted this time. Furthermore, among domestic luxury cars, top models such as the BYD Upward and Zunjie S800 will also be affected, and relevant car companies may need to adjust their pricing. Also, it is worth noting that the New Deal stipulates that taxpayers will not levy consumption tax on the sale of used ultra-luxury cars, and used car transactions will usher in significant benefits. Taken together, the current reduction in the consumption tax threshold for ultra-luxury cars and the inclusion of new energy vehicles in the levy system reflects the trend of “equal rights for oil and electricity.” Demand for new cars in the 900,000-1.3 million range may be curtailed in the short term, but it will benefit the domestic new energy upgrade and used car market in the long term.

On July 17, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Adjusting the Consumption Tax Policy for Super Luxury Cars”. After the adjustment, the scope of levy for ultra-luxury cars is “passenger cars of various power types and medium and light commercial buses with a retail price of 900,000 yuan or more per vehicle”. The policy will be implemented on July 20. Industry insiders said that models that originally “stuck” at the price threshold, such as the Mercedes-Benz S480, Land Rover Range Rover Shengshi Edition, and the Porsche Cayenne/Paramela basic model, have been directly impacted this time. Furthermore, among domestic luxury cars, top models such as the BYD Upward and Zunjie S800 will also be affected, and relevant car companies may need to adjust their pricing. Also, it is worth noting that the New Deal stipulates that taxpayers will not levy consumption tax on the sale of used ultra-luxury cars, and used car transactions will usher in significant benefits. Taken together, the current reduction in the consumption tax threshold for ultra-luxury cars and the inclusion of new energy vehicles in the levy system reflects the trend of “equal rights for oil and electricity.” Demand for new cars in the 900,000-1.3 million range may be curtailed in the short term, but it will benefit the domestic new energy upgrade and used car market in the long term.