Different Standards of Purchase-Tax

The information about acquisition tax adjustment has recently been spread. I personally felt that this reasonable purchase tax adjustment was a good thing, since it makes the difference of tax rates become more harmonious.

However, only to reduce the large displacement rate is not a good way to improve the industry.

　　1. Policy of purchase-tax for 1.6L cars has resulted in a big gap in market.

The adjustment of purchase tax for cars with 1.6-liter and a smaller engine is of great significance to spur consumption, for it will relieve the car-purchasing burden on low-income group. Its function can be reflected by the sales data. According to statistic by relevant departments, the sales of passenger cars with 1.6-liter and smaller engine rose by nearly 30% from January to May, while the cars with larger engines undergone negative growth. But the vehicles with 1.5-liter to 1.6-liter engine were the main body of high-growth. The real sales of the small-displacement cars did not increase too much. Therefore, the policy is just for emergency and needs refinement.

　　2. 1.6-liter is not a reasonable cut-off point to classify products.

A-class car, as the hottest consumption target, generally is the combination of 1.6-lier and 1.8-liter. Models with 1.6-liter and 1.8-liter, as well as 2.0-liter engine are an organic unity. Most of A-class products are combination of 1.6-liter and 1.8-liter engines, even 1.6-liter and 2.0-liter ones. This combination is hard to tell the difference in the aspect of car model and external feature of engine, other than the slight difference rout of engine crankshaft. High-emission cars prefer power to the balance of fuel consumption, while low-emission goes the opposite way.

　　3. The differentiated tax rate with the most reasonable gradient difference is the best match to energy-saving emission.

Small-displacement models users should enjoy the greatest benefits, while the large-vehicle users with stronger economic powers should pay a little more. The implementation of differentiated tax rate will help users choose their own fit models, and may prefer smaller models in terms of policy. A small horse-drawn cart is still a more reasonable choice.

　　4. Differentiation of the purchase tax enables consumers to meet their different demands.

Consumers have different demands on products, such as power and configuration, etc. There is obvious difference of configuration in those cars combined with high and low emission. High-end models are equipped with diverse safety configuration, and their prices are usually high. Generally, under the situations where the differential purchases tax rates 5% consumers will prefer low-end models, taking into account of the preferential policies.

　　5. In order to stimulate consumption, tax for the entry-car needs to be cut.

Ordinary consumers’ consumptive power is weak. For the micro models with 1-liter and smaller engines, a more favorable tax differentiation should be adopted. Because the current policy focus on stimulating the market by reducing the threshold so that more people are able to buy a private car, and it is positive to narrow the gap between the east and west, north and south as to issue of popularity of private car. The policy of different tax is the key to solving these problems. (Translator: Qinghua/Sailor)

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