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China Consumption Tax updates

  • Dec 4, 2014 | Richard Asquith

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  • The tax on spirits is repealed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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.