China to cut consumption tax on some cars - paper
Date: 27-Aug-01
Country: CHINA
The State Economic and Trade Commission would "launch stringent tests on car products to see whether manufacturers can enjoy the tax reduction", the newspaper said.
Car makers would have to meet standards equivalent to European environmental protection criteria before getting the tax incentives, the newspaper said.
Currently, the central government levies three to eight percent consumption tax on cars in addition to a 10 percent purchase tax, it said.
Domestic car manufacturers could save some 200 million yuan ($24.17 million) from the tax cut, the newspaper. It did not say when it would be implemented.
Shanghai Volkswagen, Shanghai General Motor and a Wuhan-based venture between Dongfeng Automotive Group and France's PSA Peugot Citroen have "met most of the requirements", it said.
Shanghai Volkswagen is a venture between Germany's Volkswagen AG and Shanghai Automotive Industrial Corp, which also partners with General motor .
State media have said the government was formulating a set of policies, including tax incentives, to encourage private car purchases.
Individual buyers account for roughly 40 percent of car sales in China at the present and the government aimed to boost that ratio to 70 percent over next 10 years, state media have said.