China cuts 23.04 billion yuan of car purchase tax in Jun.-Aug. period of 2022

Shanghai (Gasgoo)- There were around 3.553 million cars benefiting from China's car purchase tax breaks in the Jun.-Aug. period of this year, according to the data released by China's State Taxation Administration.

During the three months ended August, the tax cut policy saved about 23.04 billion yuan ($3.327 billion) for car buyers, data from the country's top taxation agency showed.

Thanks to this policy, the taxes cut in June, July, and August amounted to 7.1 billion yuan ($1.025 billion), 7.58 billion yuan ($1.095 billion), and 8.36 billion yuan ($1.207 billion), respectively.

China's Ministry of Finance and State Taxation Administration said on May 31 that the purchase tax for cars priced at no more than 300,000 yuan ($43,320) and with 2.0-liter or smaller engines would be halved. The tax cut will be applicable for purchases from June 1, 2022 through the end of the year.

According to data by the China Association of Automobile Manufacturers (CAAM), China's auto output and sales reached 2.395 million and 2.383 million units in August 2022, jumping 38.3% and 32.1% year on year, respectively.

China's new energy vehicle (NEV) output and sales reached 691,000 and 666,000 units last month, both hitting a new high level. For the first eight months of the year, there were 3.97 million and 3.86 million NEVs produced and sold across the country, up roughly 120% and 110% year over year.