The auto purchase tax reduction plan has been submitted to the State Council and may be launched after the Spring Festival. On the afternoon of New Year's Day 2009, Premier Wen Jiabao, while inspecting Qingdao Port, indicated that the adjustment and revitalization plans for the steel and automobile industries had already been formulated. According to the latest information obtained by reporters yesterday, this plan might be scheduled for launch after the Spring Festival.
It is reported that the "Automobile Industry Revitalization Plan" has been submitted by the National Development and Reform Commission (NDRC) to the State Council. As it involves multiple departments including the Ministry of Industry and Information Technology (MIIT), the State-owned Assets Supervision and Administration Commission (SASAC), the Ministry of Commerce (MOFCOM), the People's Bank of China (PBOC), and the State Administration of Foreign Exchange (SAFE), it must await coordination and approval from the State Council before being officially announced to the public.
The launch of the "Automobile Industry Revitalization Plan" aims to ensure a growth rate of around 10% in the automobile market. Industry experts analyzed that within the plan, according to engine displacement, purchase taxes may be reduced or exempted, and policies such as supporting automotive finance and automotive credit aim to stimulate demand in the car market and boost automobile consumption. Encouraging new energy vehicles and mandating a certain percentage of domestically branded automobiles in government procurement serve as a foundation for industrial structure adjustment.
However, an unnamed industry organization insider believed that the specific launch time of the policy might be selected after the Spring Festival.
[Related News] Delayed vehicle delivery and registration phenomena appear in the car market, anticipating adjustments to the purchase tax.
According to other reports: Although the end-of-year-beginning-of-year car market remains sluggish, a "small climax" of prosperity appeared in Beijing's automobile market during the winter. A closer look reveals that some consumers are looking at cars but not buying them, buying cars but not picking them up, and picking up cars but not registering them. Expectations for a new purchase tax scheme and considerations regarding the car price retention rate have made these three behaviors very popular.
[Related News] Eighty percent of respondents said they would definitely buy small-displacement cars if the purchase tax were reduced.
According to another report: At the end of 2008, the National Passenger Vehicle Information Association submitted a proposal to rescue the automobile industry to the National Development and Reform Commission (NDRC), the Ministry of Finance, MIIT, MOFCOM, etc. In the section on "how to promote the development of the automobile market," there was a special mention of reducing the purchase tax. Secretary-General Rao Da of the association stated that there is a possibility of implementing a reduction in automobile purchase taxes.
According to the association's plan, the main focus of reducing automobile purchase taxes is on small-displacement vehicles, highlighting the theme of environmental protection and energy saving. Would reducing the purchase tax on small-displacement vehicles stimulate consumer purchases of small-displacement cars? Last week, the reporter conducted a survey on this issue, and the results showed that nearly eight out of ten readers (78.5%) said that if the purchase tax were reduced, they would definitely buy a small-displacement car. The proportion was higher than market expectations.
In the survey, 78.5% of the readers said, "Adjustment of the purchase tax will definitely lead to the purchase of a small-displacement car." Another 13.6% of the readers said they would consider buying a small-displacement car, and less than one-tenth of the readers said they would not choose a small-displacement car due to the reduction in purchase tax.
The questionnaire also surveyed two purchase tax adjustment plans proposed by the association. The results showed that "gradually levying automobile purchase tax based on displacement" was more popular among readers than "directly waiving the purchase tax for models under 1.5 liters." Seventy-one point five percent of readers hope that automobile purchase tax will be levied based on displacement, and 28.5% of readers further proposed detailed plans, hoping that not only "displacement segments" but also "actual fuel-saving performance of models" will be evaluated when grading the tax. Only 28.5% of readers supported directly waiving the purchase tax for models under 1.5 liters.
The questionnaire also investigated whether the adjustment of purchase tax would change the timing of car purchases. The results showed that nearly eight out of ten (78.6%) readers indicated that they might change their car purchase timing due to the adjustment of purchase tax. Among them, 57.2% of the readers said they would definitely change their car purchase timing due to the adjustment of purchase tax, and only 21.4% of the readers said they would not change their car purchase timing due to the adjustment of purchase tax.