Cut in purchase tax on cars

1 January 2002

The State Administration of Taxation changed the rules for calculating purchase tax on new motor vehicles at the beginning of November 2001, Xinhua reported. The rules reduce the taxation price on which the 10 per cent purchase tax is calculated for a wide range of vehicles that includes farm vehicles as well as cars. In the example of a Dongfeng Citroen 1.6 litre model, its taxation price fell from Yn113,000 to Yn85,000, giving a tax reduction of Yn2,800.