China will halve the purchase tax for eligible passenger vehicles and ease restrictions to spur auto sales and underpin consumption, authorities said.
The country will slash the purchase tax by half for passenger cars under 300,000 yuan with engine displacements within 2 liters purchased between June 1 and December 31 this year, said a notice jointly released by the Ministry of Finance and the State Tax Administration Tuesday.
The move is in line with a State Council circular regarding a package of detailed policy measures to stabilize the economy. It called for efforts, including the tax cut, to shore up consumption, especially purchases of big-ticket items.
The Tuesday circular also urged localities with car purchase restrictions to raise the cap on number plates and ease requirements on eligible buyers.
