Shanghai December 6 (Gasgoo.com) The Chinese government is set to cancel the preferential taxes on small displacement cars, xxcb.cn reported Monday, citing the relevant person in charge at the Industrial Coordination Division of the National Development and Reform Commission (NDRC).
The NDRC had successfully implemented a series of policies and regulations since March 2009, which saw tax on small-displacement cars of 1.6L or below fall to 5%, and that was later adjusted to 7.5% for 2010 in a bid to slow down the market.
The policy is due to expire at the end of this month, which means consumers will need to pay at least 2,317 yuan ($348) more if buying a 100,000-yuan car with 1.6L or below displacement.
Secretary of the China Association of Automobile Manufacturers (CAAM) Mr. Zhang Boshun was quoted as saying "With this year's taxes being lowered, there has not been a massive effect on small car sales. The taxes were originally lowered as a way to combat the global financial crisis, while now the Chinese auto market is growing much stronger and shows that the mission has been accomplished," China Car Times reported.
Separately, the Chinese government's "cash for clunkers" program, providing subsidies ranging from 3,000 yuan to 18,000 yuan per person for replacing their old, polluting vehicles with new ones, will last until December 31, 2010. And there is no news about whether or not the program will be further extended next year for the moment.
