On July 17, the Ministry of Finance and the State Taxation Administration jointly issued the "Announcement on Adjusting the Consumption Tax Policy for Ultra-Luxury Cars" (No. 3 of 2025). It is clarified that to further guide rational consumption, adjustments will be made to the consumption tax policy for ultra-luxury cars, with relevant provisions taking effect from July 20, 2025.

The announcement states that the scope of ultra-luxury cars subject to the consumption tax is adjusted to "passenger cars and light commercial buses of various power types (including pure electric, fuel cell, etc.) with a retail price of 900,000 yuan (excluding value-added tax) or more". Correspondingly, the scope of consumption tax on imported ultra-luxury cars specified in the "Notice of the Ministry of Finance and the State Taxation Administration on Adjusting the Consumption Tax on Imported Cars" (Cai Guan Shui [2016] No. 63) will be adjusted accordingly. Among them, ultra-luxury cars without cylinder capacity (displacement), such as pure electric and fuel cell vehicles, will be subject to consumption tax only at the retail stage.

Regarding second-hand transactions, the announcement specifies that no consumption tax will be levied on taxpayers selling second-hand ultra-luxury cars. The "second-hand cars" mentioned in this announcement refer to vehicles that are traded and transferred ownership from the completion of registration procedures to before reaching the national mandatory scrap standards.

In addition, the announcement defines the sales amount at the retail stage: the "sales amount at the retail stage" mentioned in Article 3 of the "Notice of the Ministry of Finance and the State Taxation Administration on Levying Additional Consumption Tax on Ultra-Luxury Cars" (Cai Shui [2016] No. 129) includes all prices and additional fees collected by the taxpayer from the buyer in connection with the car purchase, including fees collected in the name of premium products, accessories, and services.