China To Offer Tax Cuts For Lower-Emissions Autos

ByBridgeNews China will cut consumption taxes by 30% on automobiles meeting clean-air-emission standards, the official Xinhua news agency reported recently, citing a notice issued by the Ministry of Finance and the State Administration of Taxation. The tax break will be applied to the sale of passenger, all-terrain, and compact cars reaching the European 2 emission standard. To be eligible for the tax reduction, car manufacturers must have their automobiles inspected by state-authorized quality control agents, the report said. The current three-tiered taxation system is dependent on the cylinder volume of engines and ranges from 3% to 5% to 8%. After a 30% cut, taxes will range from 2.1% to 5.6%. The tax reduction is aimed at encouraging manufacturers to meet the higher environmental standards already in effect in Europe, while the lower tax rates are expected to benefit domestic manufacturers as imported cars are currently subject to high tariff rates, it said.