Taxes on Chinese cars: What do you need to know before buying?

Chinese cars are becoming increasingly popular in Russia due to their affordable price and improved quality. However, before buying, it is important to consider not only the cost of the car, but also taxes on Chinese automobiles. These expenses can significantly affect the overall cost of ownership. In this article, we will talk about what taxes await car owners from China and how to calculate them.

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Why is it important to consider taxes on Chinese cars?

The impact of taxes on the budget

Road tax and other mandatory payments are an important part of the costs of car ownership. If you're planning to buy a Chinese car, it's important to calculate these costs in advance to avoid unpleasant surprises.

Furthermore, taxes on Chinese cars depend on several factors, such as engine power, registration region and the age of the car. Therefore, it's worth carefully studying all the details before buying.

The difference between new and used cars

Tax liabilities for new and used cars can differ. For example, new models often have higher vehicle excise duty rates due to their larger engine capacity.

So, choosing between a new and used car directly affects your annual expenses.

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What taxes do you need to pay for Chinese cars?

1. Vehicle Excise Duty

Fundamental principles of calculation

Road tax is the main type of payment that car owners are required to pay. Its amount depends on the following factors:

• Engine power : The higher the power, the higher the tax.
• Region of registration : Rates for vehicle tax vary depending on the region. For example, they are higher in Moscow than in smaller towns.
• Age of vehicle : Older vehicles may be eligible for concessions or reduced rates.

Taxation on Chinese cars tends to be in the mid-range compared to other brands.

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2. Customs duties

Features for new cars

If you’re buying a new car from China, the customs duties are already included in its price. However, it’s important to keep in mind that they can significantly increase the car's price.

For used cars imported from abroad, customs duties are calculated individually. This might make the purchase less cost-effective.

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3. Waste Disposal Fee

Things you need to know about extra charges

The disposal fee is a mandatory payment that's levied when you buy a new car. It's the same for all makes, including Chinese cars.

The toll amount hinges on the vehicle type and its emission class. For owners of Chinese cars, this is an extra expense to keep in mind.

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How do you work out taxes on Chinese cars?

1. Vehicle Excise Duty

The formula for calculating vehicle tax is simple:
Tax = Engine Power × Tax Rate × Regional Factor.

Пример:

• Car with a 150 bhp engine.
• Regional rate: £20 per horsepower.
• Total tax: 150 × 20 = £3,000 per year.

This formula will help you roughly estimate your expenses.

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2. Customs duties

A complex formula that takes into account the following is used to calculate customs duties:

• Type of vehicle.
• Engine size.
• Age of vehicle.

If you're planning on importing a car yourself, get in touch with specialists for an accurate calculation.

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3. Waste Disposal Fee

The recycling fee is fixed and depends on the vehicle category. For example, it's around £450 for passenger cars.

This levy is already included in the price of new cars, so no further action is needed from you.

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How to reduce taxes on Chinese cars?

1. Choice of Registration Region

Road tax rates vary depending on the region. For example, in some areas they are lower than in major cities. Re-registering a car in such a region could save money.

2. Concessions for certain categories of citizens

Some categories of citizens are entitled to transport tax benefits. For example, pensioners, large families and people with disabilities may receive a discount or be fully exempt from payment.

3. Choosing a car with lower power

If you're wanting to minimise expenses, go for a car with a smaller engine. It'll bring down the amount of vehicle tax you're paying.

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Top 5 Chinese cars with minimal road tax

1. Chery Tiggo 4

An economical option for the city

The Chery Tiggo 4 has an engine with up to 120 horsepower, making it a great choice for those looking to reduce taxes on Chinese cars.

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2. Haval Jolion

Compact crossover with low running costs

The Haval Jolion combines an affordable price and an economical engine, making it attractive to British drivers.

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3. Geely Emgrand

Budget saloon with minimal tax.

The Geely Emgrand is an affordable saloon with an engine producing up to 100hp, which significantly reduces vehicle tax.

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4. Lifan Solano II

Simple and dependable vehicle

The Lifan Solano II offers basic specifications and low tax liabilities, making it ideal for novice drivers.

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5. FAW Besturn X40

Compact crossover with an economical engine

The FAW Besturn X40 is an affordable vehicle with an engine output of up to 110 horsepower, keeping your tax costs to a minimum.

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Conclusion: Should you be worried about taxes on Chinese cars?

Taxes on Chinese cars are an important aspect to consider when buying. They can significantly affect the overall cost of ownership, especially if you're choosing powerful or new models.

However, by accurately calculating all expenses and choosing a suitable car, you can minimise your costs. Chinese cars remain one of the most affordable options on the Russian market, even with taxes considered.