China Used-Car Dealers Ask for Tax Cut as Market Slump Continues

  • Tax levy is hitting second-hand car traders’ growth: CADA
  • China Car Dealers Association makes appeal to finance ministry

A used car sales yard in Beijing. 

Photographer: Greg Baker/AFP via Getty Images

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China’s used-car dealers asked the government for a tax cut as a sales slump continues in the world’s largest auto market.

The China Automobile Dealers Association asked the finance ministry to charge the 2% value-added tax only on the difference between a used car’s selling price and a dealer’s purchase cost, the Beijing-based group said in a proposal dated June 14 and sent to media Monday. Currently, dealers are taxed on the total selling price.