Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : EIC 631/2/7

19 December 2016

Dear Sirs,

Commercial Information Circular No. 946/2016

The Mainland of China : Notice Concerning Reducing the Motor Vehicle Purchase Tax on Passenger Cars with Engine Displacement of 1.6 Litres and Below

The State Administration of Taxation of the People's Republic of China issued on 13 December 2016 a notice concerning motor vehicle purchase tax. The motor vehicle purchase tax on passenger cars with engine displacement of 1.6 litres and below will be levied at a reduced rate of 7.5% from 1 January 2017 to 31 December 2017. From 1 January 2018 onwards, the vehicle purchase tax rate will be levied at the statutory rate of 10%. Please refer to the Appendix (pdf format) for the notice (available in Chinese only).

ENQUIRIES

2.If you have any questions on the content of the document mentioned in this circular, please contact the issuing authority of the Mainland of China direct. For other questions on this circular, please contact Mainland Branch (I) (tel: 2398 5444) of the Department.

Yours faithfully,

(Ms Helen CHENG)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.