Top 10 game-changing auto industry events in 2016
Tax cut for small engines to prevent hard landing
An advertisement for the purchase tax discount is displayed at an auto show in Fuzhou in 2015. [Photo/China Daily] |
Authorities decided on Dec 15 to give a 25 percent purchase tax discount for those buying cars with engines no larger than 1.6 liters before 2018. Analysts believe the move will save the auto market from a hard landing in the new year. The purchase tax usually stands at 10 percent of a car's sticker price. To boost stagnant car sales, the authorities introduced a measure in late September 2015 to halve the tax for small cars, which expired on Dec 31, 2016.