China Car Group Lobbies for Permanent Tax Cut to Spur Demand
- Passenger-vehicle sales rose in 7 of 8 months since levy cut
- Purchase tax on smaller-engine models was lowered in October
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China should make a tax cut on small cars permanent to encourage the development of fuel-efficient vehicles, according to the China Association of Automobile Manufacturers, a move that would benefit automakers including Volkswagen AG.
The state-backed group is lobbying the National Development and Reform Commission and Ministry of Industry and Information Technology to include such a policy in their planning, said Ye Shengji, the association’s deputy secretary general.