Tax Breaks Boost Car Sales in China
January 13, 2016 Taxation in China
BEIJING – Tax breaks are leading to an increase in car sales in China, and the positive effect is expected to last through to at least the end of this year.
The implementation of a tax break on automobile sales has led to growth in the industry in 2015, although the rise was not as significant as expected.
It was previously expected that by the China Automobile Association that the automobile industry in the country would reach a level of 3 percent, and in reality the level actually reached 4.7 percent.
The higher-than-expected growth have been attributed to the government’s tax break on the sale of small-engine cars.
Currently, anyone purchasing a car in China will see the standard 10 percent sales tax hiked, if the car has an engine not exceeding 1.6 litres.
The tax break is scheduled to last over the course of this year, and the China Automobile Association predicts that the growth of the automobile industry may reach as high as 6 percent this year.
Photo By: Mr Thinktank