China Confirms Tax Hike On Car Purchases

China will end tax break for purchases of small cars this year, according to Caixin. Last night the Ministry of Finance announced a tax increase from 7.5% to 10%.
The expected hike follows  restrictions on car sales in Beijing, where the number of license plates issued will be limited to 240,000 in 2011
Why you should be worried is that China is the world's biggest car market, at the heart of automakers' growth projections.
Together these restrictions could have a major impact on car sales, especially if Beijing's traffic-related restrictions catch on in other cities, according to analyst Dian L Chu. Beijing alone could see a 50 percent drop in new car sales according to industry estimates.

Read more: http://www.businessinsider.com/another-blow-for-autos-china-confirms-tax-hike-on-car-purchases-2010-12#ixzz19VH9v3sC

Posted by david pangaribuan on 7:33 PM. Filed under . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response