Adding the first registration tax｜The tax for a new car of more than RMB 725,000 is more expensive than the price of an electric car?

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Written by: Huang Weilun

2021-02-24 19:01

Last update date: 2021-02-24 19:20

Financial Secretary Chen Maobo announced today (24) the new "Budget". The government will increase the first registration tax and license fee for private cars by 15% and 30%, including those promoted by the government from time to time in recent years. Electric car.

According to the new tax rate, "Hong Kong 01" calculates the first registration tax that the car owner must pay after the tax increase. Once a car owner purchases a new car of more than 725,000 yuan, the tax paid will exceed the car price. The BMW M2 "For example, the retail price is about 780,000 yuan, but the car owner must pay nearly 800,000 yuan in tax.

Regarding electric vehicles, after the government has expanded the first registration tax exemption ceiling of the "One-for-One Replacement Plan", relatively inexpensive electric vehicles are still not subject to tax; however, owners of some expensive electric vehicles still have to pay more taxes.

Li Yaopei, president of the Hong Kong Automobile Association, criticized that the economy will be affected by the epidemic and the government should not increase prices at this time, which will put car owners on the road.

He also said that the policy is not forward-looking, and the government should not increase the cost of electric vehicles across the board and miss the opportunity to promote electric vehicles.

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The government immediately adjusted the first registration tax rate for private cars to 15%.

The tax bands at all levels will increase by at least 6 percentage points. The initial taxable value of 150,000 yuan will increase from 40% to 46%. Subsequent tax bands will increase by 11 percentage points, 15 percentage points and 17 percentage points from the previous tax rate.

The new tax rate is 132% for the residual value after the taxable value of 500,000 yuan.

In addition, the vehicle license fees for private cars and electric buses have increased by nearly 30%. For example, the one-year license fee for petrol private cars of no more than 1,500cc will increase from the current RMB 3,929 to RMB 5,074; for diesel private cars of no more than 1,500cc The license fee has increased from the current $5,389 to $6,972.

The license fees for other vehicle categories remain unchanged.

Toyota "ALPHARD" to pay 41,000 yuan more first registration tax

"Hong Kong 01" calculates the taxes that car owners must pay under the old and new tax rates based on the "Automobile First Registration Tax System" of the customs.

The system shows that Toyota's "ALPHARD" (manufactured year is 2020; engine capacity is not more than 3,500cc) has a retail price of 403,700 yuan.

Based on this calculation, after the increase in the first registration tax for the car, the owner must pay 317,255 yuan when buying it, which is 41,055 yuan more than the original.

Regarding the license fee, the car has to pay 9,929 yuan per year.

BMW M2 first registration tax is more expensive than car price

Under the original first registration tax, even if a car with a price of 1 million yuan is purchased, the tax that the car owner must pay is about 950,000 yuan, and the tax does not exceed the price of the vehicle.

However, under the new tax rate, the tax paid for buying a new car of more than 725,000 yuan has exceeded the price of the car. "Buying a car is close to getting an extra car to the government."

For example, BMW's "M2" (manufactured year is 2020; engine capacity is not more than 3,000cc), according to the "Automobile First Registration Tax System", the retail price is 776,977 yuan. Calculated at the new tax rate, a tax of 793,609 yuan is required. It is more expensive than a car.

In addition, the car must pay a license fee of RMB 9,929 per year.

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Electric vehicles enjoy one-for-one first registration tax exemption in disguise and equalize more than 280,000 yuan

In addition to the increase in the first registration tax and license fee for general gasoline and diesel private cars, electric private cars are also affected.

A government source said that the government’s original intention was to curb the overall increase in the number of private cars, but it also encourages the public to switch from gasoline to electric vehicles. Therefore, the first registration tax and license fee for electric vehicles will increase. However, under the "one-for-one exchange plan," The upper limit of the first registration tax exemption for electric vehicles will be increased from the current RMB 250,000 to RMB 287,500.

According to sources, under the new measures, electric vehicles that were originally not required to pay the first registration tax under the "one-for-one replacement plan" basically remain tax-free; the main impact is the expensive electric vehicles.

According to the "Automobile First Registration Tax System", Nissan's electric car "Leaf" (manufactured year 2020) has a retail price of 299,315 yuan. Regardless of tax increase or not, the first registration tax can be Fully exempted.

However, if you purchase Tesla’s "Model S", the system shows that its retail price is 721,070 yuan. Under the new tax rate, if under the "one-for-one exchange plan", you must pay the first registration tax of 334,812 yuan. Under the original tax rate, then Pay 279,230 yuan.

In other words, although the plan increases the tax allowance, when buying expensive electric vehicles, you still have to pay a higher first registration tax.

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Li Yaopei, president of the Hong Kong Automobile Association, believes that the current increase in the first registration tax and license fee is not appropriate. In recent years, the society has been affected by the epidemic, and many car owners have been hit hard. The increase in fares will undoubtedly add to the burden of the public.

He also said that the government's housing policy "moved northward". Many new buildings are located in remote areas of the New Territories. Due to inconvenient transportation, some people who work can only drive private cars to work.

He described this type of car owner as "the most innocent"; and for some wealthy car owners or companies, even after raising the fee, the relevant people still drive out.

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Li Yaopei also criticized the government's "one size fits all" increase in the related expenses of electric vehicles, believing that the government missed the opportunity to promote the popularization of electric vehicles.

He explained that if the government only increases the cost of petrol vehicles, the price of electric vehicles in disguise will be cheaper, and it will be more attractive to the public to use electric vehicles. He criticized the policy for not being forward-looking.

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