Tax Cut to Save Chinese Car Owners $476 Million, Xinhua Reports

China’s new vehicle tax will ease the tax burden for owners of small- and medium-sized passenger cars by 3 billion yuan ($476 million) in its first year, according to a Xinhua story posted on the government’s website.

The new rates, in place since Jan. 1, cut taxes for passenger vehicles with engines of between 1.0 liter and 1.6 liters in size by about 17 percent, Xinhua said. Taxes on vehicles with engines smaller than 1.0 liter drop by at least 29 percent, it said.

To contact the reporter on this story: Liza Lin in Shanghai at llin15@bloomberg.net

To contact the editor responsible for this story: Joshua Fellman at jfellman@bloomberg.net

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