BEIJING, Sept. 6 (Xinhua) -- A new tax on cars with large engine displacements took effect this month, but the negative impact on sales will be small, experts said.
On Sept. 1, the tax on cars with engine capacities of 3 to 4 liters rose 10 percentage points to 25 percent, while the rate for those above 4 liters doubled to 40 percent.
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File photo of exhaust pipes of a car.
(Photo: chinadaily.com.cn) |
The tax is intended to favor energy-efficient models.
Both imported and domestic cars are likely to cost more as a result of the tax hikes, according to Ding Hongxiang, general manager of the China Trading Center for Automobile Imports.
Higher prices will affect sales, but some of the tax burden will also be borne by manufacturers and dealers, said Ding.
State Information Center official Xu Changming said the car market was expected to grow about 14 percent in next four months. Nationwide sales would be about 9.5 million units, excluding exports.
Luxury car dealers halt sales, seek
higher prices before car tax rises in
China
BEIJING, Aug. 17
(Xinhua) -- Dealers of imported luxury cars with big engine capacities are
halting their sales and seeking higher prices before the passenger car tax rise
is to finally start on Sept. 1, locally based paper Beijing Times reports.
An analyst with China Automobile Trading Co., Ltd said the import price of cars with engine capacities of 3 to 4 liters would be increased by 13 percent, and 33 percent for those above 4 liters, as a result of the new tax, brought in to promote oil-friendly cars and reduce oil consumption. Full story
China revamps passenger car tax rates to conserve
energy
BEIJING, Aug. 13 (Xinhua)
-- China will adjust its vehicle tax rates from Sept. 1 to favor
smaller-capacity, more fuel-efficient engines that will cut energy use and
reduce emissions, according to a joint online announcement by the Ministry of
Finance (MOF) and State Administration of Taxation on Wednesday.
The tax on cars with engine capacities of 3 to 4 liters will rise to 25 percent from 15 percent, with the rate for engines of more than 4 liters doubling to 40 percent. Full story
