·The China Automobile Association said that the government will permanently reduce taxes on small cars.

On June 14th, the China Association of Automobile Manufacturers said that China should implement permanent tax cuts on small cars to encourage the development of energy-efficient cars.
According to Bloomberg, Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers, said that the organization is lobbying the NDRC and the Ministry of Industry and Information Technology to incorporate this tax reduction policy into the plan.
Ye Shengji said in Beijing on June 13 that it is very necessary to maintain this policy in the long run. He said that this policy will not only boost consumption, but also help guide industry trends; the development of small cars should be encouraged to be included in industry planning guidelines.
China’s car sales have grown in seven months in the past eight months, and the car tax cuts will expire at the end of this year, so there has been an appeal to extend this policy. After lobbying by the China Association of Automobile Manufacturers, China halved the purchase tax on small-displacement vehicles in October last year. The industry believes that strong car sales are needed to boost slow economic growth.
China has previously issued regulations requiring that the average fuel consumption of domestic passenger cars should drop to 5 liters/100 kilometers by 2020, compared with 6.9 liters/100 kilometers last year. According to data released by the industry organization, China's car sales in May increased by 11% to 1.79 million.

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