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Luxury car sales rise in bid to beat taxman
GAS-GUZZLING imported luxury cars with heavy emissions are expected to face a rise in the car consumption tax.
The State Council, China's Cabinet, held an executive meeting on Wednesday noting the significance of energy savings and made a special call on the country's auto industry to cut back on gasoline consumption.
But no exact standards, or details of when the tax would be raised, were released.
State Administration of Taxation (SAT) sources said the agency had held multiple discussions on the consumption tax rise. A draft plan has been released, but the final decision is yet to come.
Reflecting the anticipation of such a tax rise, some consumers have pushed forward their purchasing plans. This has led to a rise in sales of imported luxury cars.
China Automobile Trading Co Ltd figures show that from January to May this year, 26,992 large cars were imported. This represented a 41.38 percent share of total car imports.
Sport utility vehicle imports in the first five months surged 91.3 percent over the same period last year.
One Chrysler dealer in Guangzhou, capital of the southern Guangdong Province, said the possible tax rise was prompting potential buyers to push forward their planned purchases.
Because of this, the dealership said it has stopped its discounting activities designed to attract clients.
The tax rise, if realized, would have the biggest impact on auto producers from the European Union and Japan. According to Customs figures from major car-consuming areas, luxury cars mainly come from these two regions.
The State Council, China's Cabinet, held an executive meeting on Wednesday noting the significance of energy savings and made a special call on the country's auto industry to cut back on gasoline consumption.
But no exact standards, or details of when the tax would be raised, were released.
State Administration of Taxation (SAT) sources said the agency had held multiple discussions on the consumption tax rise. A draft plan has been released, but the final decision is yet to come.
Reflecting the anticipation of such a tax rise, some consumers have pushed forward their purchasing plans. This has led to a rise in sales of imported luxury cars.
China Automobile Trading Co Ltd figures show that from January to May this year, 26,992 large cars were imported. This represented a 41.38 percent share of total car imports.
Sport utility vehicle imports in the first five months surged 91.3 percent over the same period last year.
One Chrysler dealer in Guangzhou, capital of the southern Guangdong Province, said the possible tax rise was prompting potential buyers to push forward their planned purchases.
Because of this, the dealership said it has stopped its discounting activities designed to attract clients.
The tax rise, if realized, would have the biggest impact on auto producers from the European Union and Japan. According to Customs figures from major car-consuming areas, luxury cars mainly come from these two regions.