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Report: China To Offer Tax Break For Buyers Of Hybrids and Diesels
26 June 2008
The Nikkei reports that China will waive its 10% vehicle purchase tax on hybrids and diesel-engine vehicles.
Currently, when buying an automobile or motorcycle in China, the buyer must pay for the price of the vehicle, which includes a consumption tax of 17%, plus a purchase tax of 10% on the pre-consumption-tax price. This vehicle purchase tax is to be waived for those buying from the government’s list of earth-friendly vehicles, likely starting sometime this year.
This tax break could heighten demand for hybrids, considering that the price gap will shrink between hybrids and versions that run on gasoline only.
Separately, the Press Trust of India reported that the Delhi government is considering providing incentives for hybrids.
June 26, 2008 in Brief | Permalink | Comments (4) | TrackBack (0)
Comments
Posted by: paul | June 26, 2008 at 05:55 PM
China gouges 27% tax on top of vehicle cost. Geez, much worse than Taxachusettes or EU's VAT. Knock off 10% and you still pay more than EU or US - the rich get richer.
Posted by: sulleny | June 26, 2008 at 09:32 PM
Beijing banned in March this year the sale of new cars that fail to meet new emission standards equivalent to Euro IV, currently the highest emission standard for cars.
http://www.chinadaily.com.cn/bizchina/2008-06/25/content_6793085.htm
Posted by: John Taylor | June 27, 2008 at 04:09 AM
At this rate of sales, China will surpass the number of US cars in service within 10 years.
Posted by: Axil | June 27, 2008 at 11:49 AM
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Why can't the US offer anything for Diesels?
My last tank was 51.75 mpg. TDI. Now with clean diesels, step up already and get the cars here.
China is doing what it has to and we should too.