Auto purchase tax may decline

• Source: Global Times
• [11:36 August 11 2009]
• Comments

The policy of reducing the purchase tax of vehicles with engines of 1.8L to 2.0L will soon come into effect, according to the Yangtse Evening Post, a daily newspaper in Nanjing, Jiangsu Province in east China.

The China Association of Automobile Manufacturers said it had suggested to related departments to extend the policy of halving the purchase tax of vehicles whose engines are less than 1.4L.

A person at the Ministry of Industry and Information Technology said the purchase tax of all vehicles with engines of 1.0L and less will decrease or even be cancelled.

"The purchase tax of vehicles must be changed. Some of the existing auto tax policies are curbing auto consumption, and they are not serving the policy of expanding domestic demand and consumption," said a person at the National Development and Reform Commission.

The person also claimed that it's necessary to work out policies for new energy vehicles. Currently, the tax for new energy cars is higher than cars that just use gasoline.

Agencies and Shi Jierui contributed to this story