China Increased the tax over large engine cars
Yesterday China announced that in order to overcome the pollution and reduce fuel consumption will increase taxes on large personal cars - and will reduce them to small cars, reported Reuters. China is the second in the world oil consumer after the United States. However, commentators argue that the new tax will have only limited effect. Chinese authorities do not want to crash with taxes the delaying road market in the country. Consumer tax on motor vehicle with more than 4 liters will be doubled and now is 40%, indicating the Ministry of Finance. For cars with an engine 3 to 4 liters tax will be increased by 25% from 15%.
The tax on small cars with engine 1 liter and less will fall from the current 3% to 1%. Taxes remain unchanged for cars between 1 and 2.5 litres, which constitute nearly 90% of the vehicle fleet in China. Less than 1% of cars in China are with engines over 3 liters. Buyers are government functionaries, for which the higher costs have a reverse effect and actually will make them to consume more.
Labels: Financial News
posted by Zoritza Petrova @ 11:50 PM
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