China Consumption Tax updates

The Ministry of Finance has provided an update on Chinese Consumption Taxes. These include

• Motorcycles below 250ml will be exempt from the tax
• The tax on spirits is repealed
• Motor vehicle tyres are exempted
• Leaded vehicles are now classified as unleaded and charged the same tax.

Consumption Tax in China is levied on certain goods sold to businesses and consumers as a sales tax.  The goods include tobacco, fuel, motor trucks, cars, motorbikes and luxury goods.   China also operates antiquated VAT and Business Tax regimes, which are being overhauled as part of VAT reform.

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