China to Have Its Auto Consumption Policy

As is learned from some departments concerned, an auto consumption policy is being drafted in China. Two aspects are to be stressed by this policy. One is to encourage car purchasing by individuals in the light of the auto industry policy. Two, to back purchasing of lightweight and energy-saving cars. Otherwise any local policies to limit car consumption will be strictly prohibited.

Sources say the auto consumption policy which is about to be promulgated involves mainly tax management, city construction coordination, credit policy and consumption encouragement.

When a reduction is made of tax items tax levy procedures should be simplified in tax management. City administration must be coordinated with traffic supervision. No cars should exceed auto pollution standard set by the state; autos with a low safety standard should be scrapped.

Auto consumption credit policy will be further perfected; financial institutions are encouraged to promote auto consumption loans in the form of mortgage, security and compulsory insurance.

The policy will fully reflect the guiding principle of encouraging economical cars with a low exhaustion capacity; discriminating duty according to gas discharge will be carried out. Large cities are allowed to decide the maximum number of cars to be in need, but not allowed to implement discriminating policies to restrict use of cars with a minimum of gas exhaustion.

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