On May 31, the Ministry of Finance and the State Administration of Taxation issued the “Announcement on Reducing and Collecting Purchase Tax for Some Passenger Vehicles”, showing that the purchase date is within the period from June 1, 2022 to December 31, 2022, and the price of a bicycle ( 2.0 liters and below passenger cars with a displacement of not more than 300,000 yuan, excluding value-added tax), the vehicle purchase tax will be halved.
A short piece of news reveals a wealth of policy information.
First, this is the implementation of the details of the measures to reduce the 60 billion yuan car purchase tax. On May 23, the executive meeting of the State Council further deployed a package of measures to stabilize the economy, and decided to relax the restrictions on car purchases and reduce the purchase tax of some passenger cars by 60 billion yuan in stages. Just one week later, the detailed rules of the policy were released within the deadline of the end of May as required by the National Convention, reflecting the sense of urgency to stabilize the economy. Time does not wait for me, we just race once morest the clock, race once morest time and the market. The earlier the policy details are released, the sooner the auto market will benefit and contribute to stabilizing the economy. The speed and strength are amazing. Previously, the relevant parties estimated that the retail sales of passenger cars in 2022 would be 19 million units, a year-on-year decrease of 5%; it is expected that the implementation of new policies such as purchase tax concessions and efforts to promote consumption in the next seven months will promote the annual retail sales to reach 21 million units. A year-on-year increase of 4%.
Second, this is an important measure to promote the prosperity of the automobile consumption market in the short term. All policies have a certain timeliness. The halving of the vehicle purchase tax this time, the time limit set by the policy is from June 1 this year to the end of this year, only 7 months, which can boost the auto market in the short term. This “short-and-snap” policy was also introduced in response to the severity of the current auto market. According to a previously released data, my country’s car ownership in 2021 will be 302 million, of which fuel vehicles will account for 97.2%, or regarding 293 million. And Li Yizhong, former minister of the Ministry of Industry and Information Technology and president of the China Federation of Industrial Economics, said at the 2022 China Electric Vehicle 100 Forum held on March 26 that “it is expected that by 2030, fuel vehicles will still account for 80% of my country’s car ownership.” The sales situation of gasoline vehicles is worrying. The introduction of the fuel vehicle promotion policy this time, and has a certain timeliness, is expected to bring fuel vehicle sales. The previous two rounds of purchase tax reduction were only aimed at passenger cars with a displacement of 1.6 liters and below. This time it is directly classified as a passenger car with a displacement of 2.0 liters and below that does not exceed 300,000 yuan. unprecedented.
Third, it is a policy to encourage middle-income consumers to pay. It is exciting to enjoy the preferential policies for car purchases of “no more than 300,000 yuan”. Previously, affected by factors such as expectations of the country’s stimulus consumption policy, consumers were in a wait-and-see mood. The halving of the vehicle purchase tax this time is a policy attraction for the huge middle-income group. Driven by the policy, the middle-income group who originally covered their wallets and hesitated to wait and see can hope to use the charm of the policy to make up their minds to achieve dream of owning a car.
Fourth, this is also taking into account all self-owned brand models. The purchase tax halving policy will increase the applicable models from 1.6 liters and below to 2.0 liters and below, which is expected to drive the demand of all self-owned brand models, all mainstream models of joint venture brands, and some entry-level luxury car markets, with huge growth potential. This policy can be described as a “super-powerful red envelope”, which is expected to drive the increase in car consumption by 2 million units, and is different from the previous limitation – it can only drive the growth of A-class and below passenger cars. This time the drive is “comprehensive” ” coverage.
It is worth noting that, recently, the State Council issued the “Package of Policy Measures to Steady and Stabilize the Economy”, and put forward a number of measures in terms of steadily increasing automobile consumption, including gradually increasing the automobile increment index in restricted areas, and encouraging the implementation of differentiation between urban and suburban areas. policy, the removal of restrictions on the relocation of second-hand cars in an all-round way, the removal of restrictions on the relocation of second-hand cars in the “National Five” nationwide, and so on. The halving of vehicle purchase tax is also among the series of policies.
The automobile industry is an important pillar industry of the national economy. It plays an important role in the development of the national economy and society due to its long industrial chain, high degree of correlation, wide employment, and great consumption-driven development. The automobile industry is the backbone of China’s manufacturing industry and an important link to stabilize the economy.
It can be firmly believed that with the implementation of a series of policies to stabilize automobile consumption, the automobile industry will gradually achieve recovery growth, which will provide an important support for stabilizing the economy.
Text / Cai Enze
Editor / Song Yuting
