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China issues stimulus package for auto sector: state media

China issues stimulus package for auto sector: state media

China has issued a stimulus package for its auto sector, including a tax cut, the first in a series of policies to boost key industries in the midst of the global crisis, state media said yesterday.
The package from the State Council, or cabinet, includes a cut in the sales tax to five percent from 10 percent for cars with engines smaller than 1.6 litres, from Jan. 20 until the end of the year, the China Daily reported.
"In order to adjust and revive the auto sector, we must implement a proactive consumption policy ... to stabilize and boost auto demand," the State Council was quoted as saying. The government is expected to release supportive policies for eight other industries, including shipbuilding, petrochemicals and textiles, in the next few days, according to the paper.
The package promises a 10-billion-yuan (US$1.5 billion) subsidy over the next three years for auto makers that upgrade their technology and develop alternative-energy vehicles.
The government in particular wants to promote the mass production of electric cars in big and medium-sized cities, according to the paper.
The package also calls for five billion yuan to be spent as subsidies for farmers who opt to replace three-wheeled vehicles or outdated trucks with new, small vehicles.


Updated : 2021-04-21 01:46 GMT+08:00