Luxury car or levy 20% luxury goods consumption tax

According to an insider of a German luxury car brand, the recent news about luxury goods levies on luxury cars is basically true, but the actual implementation time is still unknown. “Ministry of Finance and the State Administration of Taxation and Other relevant ministries are studying”.

Levy 20%? Standards are in development
At the moment, the rumors of taxed car prices in the market have two arguments: more than 1.7 million and more than 1.8 million. More arguments say that "a luxury vehicle with a price of more than 1.7 million after deduction of value-added tax is tentatively subject to a 20% luxury consumption tax."

A person of the China Association of Automobile Manufacturers, who did not want to be named, said that this policy, the Ministry of Finance, is being worked out and will eventually be solicited.

Earlier, the relevant person in charge of the Ministry of Finance also said in an interview that there is a scope for further refinement and adjustment of the consumption tax on passenger cars currently levied on a displacement basis.

Nandu reporters interviewed industry professionals and car makers to learn that it is a foregone conclusion to impose a luxury consumption tax on high-priced luxury cars. As for when to collect taxes, the specific tax rate is still unclear.

Luxury car market may enter turmoil
This time, the consumption tax adjustment of luxury cars is 7 years away from the previous round of consumption tax adjustment in 2006. Recalling that the increase in vehicle consumption tax was announced in March 2006, the luxury car market is now experiencing a collective price increase and even being snapped up.

This year, the impact of the levy of luxury car consumption tax on luxury car brands shows a clear and ambiguous trend: mainstream luxury brands do not care, and even a little "indifferent"; ultra-luxury car brands are waiting to find solutions.

A BMW dealer named Chen surnamed BMW, which is located in China with sales of more than 1.7 million yuan. Only models of the X5, 5 Series GT, M Series, 7 Series, 6 Series and X6 series are sold. Big, the contribution to BMW sales is limited.” The dealer is even more predicting that taxation will trigger short-term buying, but in the medium and long term, there is little impact on the sales of BMW, Mercedes-Benz, Audi and other mainstream luxury brands.

Sun Shiqing, an analyst in the automotive industry, believes that the impact on ultra-luxury brands such as Bentley and Rolls-Royce is not small. Once the 20% tax on luxury goods is introduced, the super-luxury car market for “overdraft” consumption will be negative again.

Zhang Zhiyong, an expert in the automotive industry, said that the total sales volume of luxury cars with a price above 1.7 million yuan in China does not exceed 5000 units a year, which will not affect the overall production and sales scale of the entire market, but it will affect the change of consumer psychology in the entire luxury car market. The development of the luxury car market. “The scale of production and sales in the Chinese market has been ranked among the top in the world, but the price of the car has not yet converged with the developed countries in the world. This is inconsistent with the scale of production and sales.” He predicts that the luxury automobile market in China will enter a turbulent period, with production and sales scales and car prices Will be adjusted to return to rationality.

[background data]

In the first quarter of this year, the ultra-luxury car market fell by more than 30%. The Southern Reporter learned from related parties that from the second half of 2012, sales of ultra-luxury cars in China suffered a “deceleration zone.” At the end of last year, the market growth rate fell sharply. In the first quarter of this year, ultra-luxury vehicle segment sales fell by 35.19% year-on-year to only 915 units.