SEMA eNews Vol. 11, No. 34, August 21, 2008

CHINESE MOTORISTS TO PAY HIGHER CONSUMPTION TAX FOR LARGER CARS

Consumption tax on cars from September 2008
Engine Size (cc) Consumption Tax (%)
up to 1,000 1
1,000-1,500 3
1,500-2,000 8
2,000-3,000 20
3,000-4,100 25
4,100+ 40
Source: Ministry of Finance
 

Taxes on vehicles equipped with larger-size engines will rise from 15% 25% in China on September 1 as the government seeks to slow sales of engines with 3 to 4 liters. The tax on the largest engines will increase to 40%.

 

Sales of imported cars increased 25% to more than 80,000 units sold during the first six months of 2008, according to the China Association of Automobile Manufacturers. The English-language newspaper China Daily reports that imports of SUVs increased by more than 91% in the first five months of 2008, and that large cars account for 42% of all auto imports.

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