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.