|Electric-car buyers exempt for tax
China will exempt electric-car buyers from purchase taxes as part of expanded State measures to boost sales of the vehicles, an executive meeting of the State Council said on Wednesday.
From Sept 1 to the end of 2017, the government will waive the auto-purchase tax for new-energy vehicles, which in China refers to all electric cars, plug-in hybridsand fuel-cell vehicles, said the meeting, led by Premier Li Keqiang.
The development of such vehicles is critically important for easing China's energy dependency, combating air pollution, spurring local demand and nurturing the auto industry, the meeting said.
The incentives will be a win-win scenario for the sector, as it nurtures the local auto industry and protects the environment, the meeting said.
New-energy vehicles are important for China's energy independence, so Beijing will "devote more resources to promoting them", said Cai Linlin, a senior auto analyst in Shanghai.
"The waiver is beyond expectations, as the government is expected to roll out a string of policies before EV sales pick up," Cai said.
China now has about 70,000 new-energy vehicles on the road after five years of promotion, a far cry from the central government's call for reaching 500,000 by 2015. --Xinhua