China's auto association lobbies for purchase tax cut to boost sales

The state-backed China Association of Automobile Manufacturers is lobbying the government to cut the 10% tax on vehicle purchases by half, raise limits on the number of new cars consumers can buy and accelerate replacement of old vehicles to bolster demand after vehicle sales fell for the fifth month in a row in August, Bloomberg reported. At a monthly briefing in Beijing Shi Jianhua, deputy secretary-general of the association, also complained that car demand “has also been undermined by efforts to contain pollution and curb energy consumption.”