The automobile purchase tax reduction plan has been submitted to the State Council and may be launched after the Spring Festival. On New Year's Day afternoon in 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 to be launched 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 such as the Ministry of Industry and Information Technology (MIIT), the State-owned Assets Supervision and Administration Commission (SASAC), the Ministry of Commerce, the People's Bank of China, and the State Administration of Foreign Exchange, it needs to be coordinated and approved by the State Council before being officially announced.
The launch of the "Automobile Industry Revitalization Plan" aims to ensure that the automobile market maintains a growth rate of around 10%. Industry experts analyzed that in the plan, reducing or exempting purchase tax based on engine displacement, as well as supporting automobile finance and automobile credit policies, aim to stimulate demand in the car market and encourage automobile consumption. Encouraging the development of new energy vehicles and mandating a certain proportion of domestically branded vehicles in government procurement serve as a foundation for industrial structure adjustments.
However, an unnamed industry organization person believes that the specific launch time of the policy might be selected after the Spring Festival.
[Related News] Delayed vehicle delivery and registration due to anticipation of purchase tax adjustment
According to another report: Although the end-of-year and beginning-of-year car market remains bleak, Beijing’s automotive market experienced a “small climax” of prosperity during the winter. Upon closer inspection, it was found that some consumers were looking at cars but not buying them, buying cars but not taking delivery, and taking delivery but not registering the vehicles. Expectations of a new purchase tax scheme and considerations regarding the preservation of car prices have made these behaviors quite prevalent.
[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 Car Information Association submitted a proposal to assist the automobile industry to the National Development and Reform Commission (NDRC), the Ministry of Finance, MIIT, and the Ministry of Commerce. In the section on "how to promote the development of the automobile market," it specifically mentioned lowering the purchase tax. Secretary-General Rao Da of the Passenger Car Association expressed that there is a possibility for implementing the reduction or exemption of automobile purchase tax.
According to the association's plan, the main focus of reducing automobile purchase tax would be on small-displacement vehicles, emphasizing the themes of energy conservation and environmental protection. Would reducing the purchase tax on small-displacement vehicles stimulate consumer purchases of such cars? Last week, reporters conducted a survey on this matter, and the results showed that nearly eight out of ten readers (78.5%) indicated that if the purchase tax were reduced, they would definitely buy small-displacement cars, a proportion much higher than market expectations.
In the survey, as high as 78.5% of the readers stated that "adjustment of the purchase tax will definitely lead to the purchase of small-displacement cars." Additionally, 13.6% of the readers said they would consider purchasing small-displacement cars, while less than one-tenth of the readers said they would not choose small-displacement cars due to the purchase tax reduction.
The questionnaire also investigated two proposed purchase tax adjustment schemes by the association. The results showed that "grading automobile purchase tax based on engine displacement" was more popular among readers than "directly waiving purchase tax for models under 1.5 liters." Seventy-one and a half percent (71.5%) of the readers hoped for automobile purchase tax to be graded based on engine displacement. Among them, 28.5% further proposed detailed plans, hoping to "evaluate the actual fuel-saving performance of models in addition to engine displacement when grading the purchase tax." Only 28.5% of the readers supported directly waiving the purchase tax for models under 1.5 liters.
The questionnaire also surveyed whether the adjustment of the purchase tax would change the timing of car purchases. The results showed that nearly eight out of ten readers (78.6%) might change their car purchase timing due to the adjustment of the purchase tax. Among them, 57.2% of the readers indicated that they would definitely change their car purchase timing because of the purchase tax adjustment, while only 21.4% of the readers said they would not change their car purchase timing due to the purchase tax adjustment.