China: Vehicle purchase tax reduction of over 23 billion yuan from June to August

Data from the State Administration of Taxation show that from June to August this year, about 3.553 million vehicles across the country enjoyed the vehicle purchase tax reduction policy, with a cumulative reduction of 23.04 billion yuan in vehicle purchase tax.

Among them, 1.097 million vehicles enjoyed the purchase tax reduction policy in June, with a tax reduction of 7.1 billion yuan; 1.16 million vehicles in July, a tax reduction of 7.58 billion yuan; 1.296 million vehicles in August, a tax reduction of 8.36 billion yuan.

According to the announcement jointly issued by the Ministry of Finance and the State Administration of Taxation on May 31 this year, the purchase date is within the period from June 1, 2022, to December 31, 2022, and the bicycle price (excluding VAT) For passenger cars with a displacement of 2.0 liters and below not exceeding 300,000 yuan, the vehicle purchase tax will be halved.

In addition, data from the State Administration of Taxation shows that from January to July this year, new energy vehicles were exempted from vehicle purchase tax of 40.68 billion yuan , a year-on-year increase of 108.5%.

According to data from the China Automobile Association, in August, the production and sales of automobiles were 2.395 million and 2.383 million, down 2.4% and 1.5% from the previous month, and up 38.3% and 32.1% from the same period last year. Among them, the production and sales of new energy vehicles in August were 691,000 and 666,000 respectively, and the monthly production and sales reached a new record high, with production and sales increasing by 1.2 times and 1 time year-on-year respectively.