Laws of the People's Republic of China

Reply of the State Administration of Taxation on the Issue of Levying Consumption Tax on Purchased Automobiles Refitted from Complete Vehicles

Guo Shui Han [2006] No. 772

The State Administration of Taxation of Chongqing Municipality,

Your "Request for Instruction on Whether to Levy Consumption Tax on Purchased Special Automobiles Refitted from Complete Vehicles" (Yu Guo Shui Fa No. 98 [2006]) has been received. And hereby we give our reply as follows:

The formulation of the provisions in the Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting and Improving Consumption Tax Policies (Cai Shui No. 33 [2006]) on levying consumption tax on the vehicles refitted or transformed from vehicle chassis (frames) is to resolve the question that under what sub-item (passenger vehicles or medium or light commercial passenger vehicles) shall consumption tax be levied on the vehicles refitted or transformed from the chassis (frames) of different kinds of vehicles, instead of limiting the levy of consumption tax only on refitted or transformed vehicles of such categories. Consumption tax shall also be, in accordance with provisions, levied on the purchased automobiles refitted from complete passenger vehicles or complete medium or light commercial passenger vehicles.

The State Administration of Taxation

August 15, 2006