China will cut the purchase tax for low-emission passenger vehicles by half in a bid to boost auto sales, according to a statement from the finance ministry on Tuesday. The move comes after COVID outbreaks and lockdowns eroded consumer confidence.
The tax reduction will apply to vehicles with no more than nine seats that are sold between June and December.
The decision was one of a series of measures outlined by China’s cabinet on Tuesday in an effort to stimulate the country’s economy, which has been hampered in recent months by the country’s harsh zero-COVID policies.
