Skip to main content

China to slash Car import taxes by 50%


According to sources that have spoken to Bloomberg China is considering a move to reduce car purchase tax form 10 per cent to as little as 5 per cent, a 50 per cent drop.

The move is in response to China's ailing automotive market which is heading for its first decline in car sales in almost two decades, which some are saying is a direct result of the US trade war.

China has seen outstanding growth in the automotive market thanks to the increasing income of the Chinese middle classes.


The proposal has been good news for carmakers across the globe with Volkswagen AG seeing their share price increase by a staggering 6.9 per cent, the biggest intraday move since July 2016. Ford Motor Co. and General Motors Co. rallied in U.S. trading, while BMW AG and Daimler AG gained in Germany.

This is helping to steady the world’s largest automotive market, which is facing its first decline in more than two decades as a trade war with the U.S. hits at consumer spending power.

The trade war between the US and China has seen the Chinese economy and its stock market take the biggest hit.

The tax cut will only apply to cars with engines of 1.6 litres or smaller, said the people, declining to be named because the information isn’t public. China’s National Development and Reform Commission, also the top regulator, has submitted a plan but no decision has been, they said.

“This is definitely good news and a message the market has been waiting for,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler.
Ford rose as much as 6.3 per cent on Monday, GM rallied as much 5.1 per cent.

Cars of that engine size accounted for some 70 per cent of the total number of passenger vehicles sold last year, according to the China Association of Automobile Manufacturers.

China increased the levy on vehicles imported from America to 40 per cent. 
www.ecocropsinternational.com
Labels:

Comments

Post a Comment

Popular posts from this blog

Industrial wood pellets are trading at an all-time high.

EcoCrops International reports that Industrial wood pellets, as opposed to domestic wood pellets, are currently trading at an all-time high.  With the Argus 90 day Industrial wood pellet index trading at US$210 per tonne, up strongly from July 2018 where they were trading at US$175. The steep increase in prices is primarily driven by higher demand from European Power Stations.  Such as new power station coming online in the Netherland, Belgium, and Italy.  And existing Power stations such as the huge UK Drax power station burning more wood pellets and burning less coal. This trend is set to increase due to a number of factors: The EU climate change targets for reducing its greenhouse emissions, transforming the EU carbon-based fuel (coal) police towards a low carbon economy by 2050.  With targets for the reductions of greenhouse emissions is set for 2020 and 2030. Germany’s plant to phase out all coal power stations by 2038.  And the increased efficiency of carbon capture a
1 comment
Read more

Secure your online wallets & be careful with online services

You should be wary of any service designed to store your money online. Many exchanges and online wallets suffered from security breaches in the past and such services generally still do not provide enough insurance and security to be used to store money like a bank. Accordingly, you might want to use other types of Cyber currency wallets.  Otherwise, you should choose such services very carefully. Additionally, using two-factor authentication is recommended. Small amounts for everyday uses A Bitcoin wallet is like a wallet with cash. If you wouldn't keep a thousand dollars in your pocket, you might want to have the same consideration for your Bitcoin wallet. In general, it is a good practice to keep only small amounts of bitcoins on your computer, mobile, or server for everyday uses and to keep the remaining part of your funds in a safer environment. Backup your wallet Stored in a safe place, a backup of your wallet can protect you against computer failures and many hu
2 comments
Read more

British Power Generator Drax creates world first Carbon Capture on its wood pellet power plant

Drax’s wood pellet power station has started to capture all C02 produced from the combustion of its wood pellets feedstock. A small demonstration plant located in a facility near Selby, North Yorkshire is capturing the C02 by using an amine-free solvent-based process called C-capture. C-capture was developed by the University of Leeds in conjunction with Drax who invested £400,000 in developing the plant. The Director of Engineering of C-Capture. Said “Working at this scale is really where the engineering gets interesting. The challenge now is to get all the information we need to design and build a capture plant 10,000 times bigger. It’s only really when we get to those sorts of scales that we can start to have an impact on the climate.”  James Grainger of Ecocrops Internationa l said the implication for the wood pellet market is enormous as it will change wood pellets from being carbon neutral fuel source to being carbon positive fuel source. www.ecocropsinternational.com
1 comment
Read more