Three car manufacturers will enjoy up to 30 percent exemption of
consumer tax, officials with the
State
Environmental Protection Administration (SEPA) said Friday.
Officials said that cars whose exhaust emissions are confirmed to
meet the Europe II standard are qualified for the tax
exemption,said the officials.
The favorable policy will cover the qualified cars made by Shanghai
GM Company Ltd., Shanghai Volkswagen Corp. and Aeolus-Citroen
Automobile Co., Ltd. based in central China's Hubei Province.
Another domestic auto giant, FAW-Volkswagen Automotive Company
Ltd., is also applying for the special treatment. If approved, the
four leading domestic manufacturers will get tax cuts totaling 1.5
billion yuan (US$181 million) this year, according to experts'
initial estimates.
However, the various tax cuts for individual manufacturers willbe
checked and ratified by the State
Administration of Taxation, officials said.
Officials said that the policy is to encourage manufacturers to
make their cars conform to an even higher standard of environmental
protection.
(
November 17, 2001)