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Tax decrease on some car purchases
January 25, 2009, Sunday
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Print Edition
Print Edition
SAVING energy and reducing emissions have become an essential and urgent task for the world. Many countries are making efforts to pursue a balance between economic development and energy consumption to protect our environment and resources.
Of course, the Chinese government is taking its own measures. This year, from January 20 to December 31, the tax will decrease 5 percent on automobiles with emissions equal to or less than 1.6L.
According to the law, the tax rate is 10 percent now. Because the price of automobiles includes the VAT (value appreciation tax), we need to deduct the VAT of 17 percent from the price when calculating the automobile-purchasing tax. For example, if you want to buy a car covered in the tax policy that costs 100,000 yuan, the tax you need to pay will be calculated like this: (100,000/1.17) x 0.1, which equals 8,574 yuan. According to this formula, the consumer will save 4,273 yuan when purchasing this car under the new policy.
In addition, from March 1 to December 31 this year, the government will allocate 5 billion yuan to pay a lump sum financial subsidy to those who purchase small trucks and buses with emissions less than 1.3L. At the same time, the government will appropriate more money to upgrade older vehicles. Some improper rules will be canceled on the purchase of automobiles.
Of course, the Chinese government is taking its own measures. This year, from January 20 to December 31, the tax will decrease 5 percent on automobiles with emissions equal to or less than 1.6L.
According to the law, the tax rate is 10 percent now. Because the price of automobiles includes the VAT (value appreciation tax), we need to deduct the VAT of 17 percent from the price when calculating the automobile-purchasing tax. For example, if you want to buy a car covered in the tax policy that costs 100,000 yuan, the tax you need to pay will be calculated like this: (100,000/1.17) x 0.1, which equals 8,574 yuan. According to this formula, the consumer will save 4,273 yuan when purchasing this car under the new policy.
In addition, from March 1 to December 31 this year, the government will allocate 5 billion yuan to pay a lump sum financial subsidy to those who purchase small trucks and buses with emissions less than 1.3L. At the same time, the government will appropriate more money to upgrade older vehicles. Some improper rules will be canceled on the purchase of automobiles.
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