China offering tax breaks on electric cars in an effort to fight air pollution

China offering tax breaks on electric cars in an effort to fight air pollution

The tax benefits will mostly be limited to electric car models made by Chinese automotive companies, but will span at least 17 models from 11 different car companies.

China wants citizens to drive electric cars.

That much is clear based on a recent Reuters report, which states that the Chinese government will offer tax breaks on the purchases of electric vehicles. The tax benefits will mostly be limited to electric car models made by Chinese automotive companies, but will span at least 17 models from 11 different car companies.

China has the world’s largest auto market, and it also has mounting pollution problems that are greater than almost any other spot in the world. Because of this, it is not terribly surprising that the government has opted to drop sales tax on electric cars in an effort to establish a greener, more environmentally-conscious nation.

Already, the Chinese government has made other moves to support the sale of electric cars and hybrid automobiles. China has long offered subsidy rebates for private buyers who purchase electric vehicles, and last year, the government renewed those subsidies for another three years.

So how much are Chinese citizens given if they want to take advantage of the government subsidy? 60,000 yuan (the equivalent of about $9,800 in American currency) for all-electric cars, and 30,000 yuan for hybrid vehicles.

In addition to the subsidy, the Chinese government has ordered its public officials to make better use of electric and hybrid car technology. Government agencies have been urged to purchase a greater number of electric vehicles from domestic brands.

All told, China wants to put 5 million new electric or hybrid cars on the road between now and 2020. The hope is that, with a greater reliance on electric automobiles, the country will be able to curb its dire air pollution situation.

 

 

 

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