Serving the World's Largest Emerging Automobile Market
Home > Laws and Regulations > Vehicle purchase tax breaks to end at year end

Vehicle purchase tax breaks to end at year end

BEIJING – The preferential purchase tax of 7.5 percent for vehicles with engines under 1.6L will come to an end on December 31, 2010, and the tax rate will restore to the conventional 10 percent from January 1, 2011, according to an official notice issued by the Ministry of Finance and State Administration of Taxation on December 27.

 With purchase tax breaks of 5 percent carried out in 2009, China’s vehicle sales volume achieved 13.6 million units in that year, realizing a 46.15 percent increase compared with 2008. Although the tax rate increased to 7.5 percent in 2010, sales volume has exceeded 16 million units through to October, which generates a ¥156.9 billion ($23.1 billion) taxation, up 53.3 percent over the same period of 2009.  

Leave a Reply