China offers preferential tax rate for imports of low-emission vehicle parts

Shanghai. September 11 (Gasgoo.com) - China's Ministry of Finance is preparing to release a preferential tariff policy for the imports of energy-saving and environmental-friendly automobiles and spare parts, a senior Chinese official said late last week.

"In order to encourage the use of hybrid and low mission vehicles, the Ministry of Finance will offer significant tax cuts for the imports of hybrid engines and diesel-powered sedans," said Wang Wei, a senior official from Ministry of Finance.

"The tax breaks will only be applicable to passenger vehicles that can meet both the second stage fuel consumption limits and China IV Emission standard," he added.

Wang also said that energy-efficient vehicles powered by gas engines, diesel engines, hybrid and electric motors and bio-fuels are being considered, but engines using methanol and ethanol fuel are not.

As to auto spare parts, the Ministry of Finance will unveil a list of auto parts that fall into this preferential tax catalogue. 

The tax adjustments are part of the government's plan to expand the use of fuel-clean and high-tech vehicles for energy savings and environmental protection.