China Extends Tax Rebate for New-Energy Cars
China will extend a tax rebate on the purchase of new-energy vehicles, reflecting the country’s ongoing efforts to boost the emerging sector.
The government will continue to waive the current 10% purchase tax on new-energy vehicles until the end of 2020, the Ministry of Finance said in a statement on Wednesday. The current tax rebate policy was due to expire at the end of this year.
New-energy vehicles include hybrid cars as well as those powered exclusively by electric batteries or hydrogen fuel cells.
The announcement spurred stocks in the sector to rise significantly on Wednesday. The share price of Shenzhen-based car manufacturer BYD Co. Ltd., for instance, rose 5.92% by close of trading.
But the years-long subsidy program has led to widespread fraud. An industry-wide investigation launched by regulators late last year found that companies employed a range of tricks to qualify for state support, including falsifying data.
Regulators are also concerned about overcapacity in the industry. Beijing launched a probe into the “low quality, blind expansion” in the electric vehicle sector in October, according to the Ministry of Finance.
Beijing has instead opted for a quota system that will require all carmakers to ensure a certain percentage of sales come from low- or zero-emission vehicles, starting from 2019. The quota will be gradually increased, forcing automakers to buy “credits” from other producers for every conventional car they make.
Contact reporter Mo Yelin (email@example.com)
May 21 19:59
May 21 17:50
May 21 17:13
May 21 17:46
May 21 15:04
May 21 14:38
May 21 14:30
May 21 11:25
May 21 09:49
May 21 04:01
May 21 04:12
May 20 18:56
May 20 18:10
- 1Opinion: Jack Ma’s ‘669’ Sex Joke Reinforces Tech’s Culture of Gender Harassment
- 2Jack Ma Faces Backlash for Telling Employees How Often to Have Sex
- 3China Boosts Hydrogen Fuel Cell Investment in Green Energy Push
- 4Huawei to Seek Remedies in Face of U.S. Ban
- 5Huawei Prepares ‘Alternative Chips’ to Cope With U.S. Ban
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas