Beijing is looking to launch a car subsidy program that encourages drivers to replace their old and polluting vehicles, the Wall Street Journal reported. The government is currently asking for feedback on the plan, under which consumers can receive a US$450 to US$900 subsidy against the purchase of a new vehicle if they deliver their old cars to special scrapping centers. The Ministry of Commerce said on its website that the amount of subsidy received depends on the size of the car. Those who buy new cars with engines of 1.6 liters or less are not eligible for the subsidy, as they already receive a 50% discount on the car’s purchase tax under a previously announced plan. Car sales in China increased by 14.3% from January to May this year, a rise that analysts attribute to favorable government policies.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved