China to cut combustion motor taxes to boost car industry

Climate protection in the Chinese transport sector will only play a minor role until the end of the year: In order to boost the car industry, the Chinese government is now halving the purchase tax for cars with internal combustion engines.

The new purchase tax for combustion vehicles at least only applies to vehicles with up to 2 litres capacity, which are bought between 1 June and 31 December 2022 and cost no more than 300,000 yuan (45,060 US dollars). Before the directive came into force, the tax rate for internal combustion cars in China was ten per cent. New Energy Vehicles remain exempt from purchase tax.
cnevpost.com