New policy of vehicle purchase tax cut tax of 3.68 billion yuan in the first month, helping automobile market warming up

Reporters from Securities Daily got news that the October 1st new policy of purchase tax halving benefits for passenger cars with displacement less than 1.6L has been put into effect for a month.

Data from State Tax Administration (STA) showed thatthe passenger car with displacement less than 1.6L segment has a sales volume of 919,000, increasing 7.7% and 11% with October last year and September this year respectively. Apart from several vehicles in process, 891,000 qualified vehicles have been cut tax of 3.68 billion yuan, with significant benefit effects.

Relevant officials of Goods and Service Tax Department, STA said that this new policy has not only cut tax, but also guided consumption of qualified vehicles and resulting energy-saving and emission-reduction. The car market sells 1.147 million vehicles in October, among which cars with displacement less than 1.6L occupies 80.1% and sells 919,000, increasing 3.5% and 4% with October in last year and September this year respectively.

Reporters from Securities Daily learned that after State Council’s decision of the new tax policy, STA required tax authorities of all levels strengthen departmental cooperation, complete information system upgrade in time, carry out tax policies with accuracy, improve tax relief verification and intensify trace and effect analysis of policy execution.