China's latest efforts to boost sales of automobiles, home appliances and other big-ticket items are expected to stimulate consumers' appetites, spur a consumption recovery amid the pandemic, and stabilize economic growth.
The State Council, China's Cabinet, has announced 33 measures to stabilize economic growth in an effort to get the economy back on a normal track and keep major economic indicators within an appropriate range. The measures include boosting sales of items such as automobiles and home appliances to further unleash consumption potential.
The nation's home appliances industry, which has the world's largest production and sales volume, is a key driver of domestic consumption growth. Industry insiders said the promotion of green and intelligent home appliances is in line with efforts to pursue a green, low-carbon and sustainable development path.
According to a notice issued by the Ministry of Commerce and 16 other central government departments on July 5, the authorities are considering extending purchase tax exemptions for new energy vehicles, or NEVs. The exemptions are due to end on Dec 31.
The notice stated that more should be done to encourage purchases of NEVs in rural areas, speed up construction of charging facilities, and help charging point operators lower their fees.
The owners of some 1.09 million vehicles benefited from the halved purchase tax last month, with the combined relief totaling 710 million yuan, according to the State Taxation Administration.
According to the State Council, vehicle purchase tax cuts nationwide could total 60 billion yuan by the end of this year. Ping An Securities said the figure would account for 17 percent of the vehicle purchase taxes levied last year.