Shanghai Jiading District Launches Vehicle Purchase Subsidies
Though high-risk, lockdown and control areas are still under some number of restrictions, Shanghai has now become fully operational as of June 1st. The Jiading District of Shanghai today issued 12 policies to boost consumption throughout the city.
To promote a sustained consumption recovery, the new policies indicate that automobile manufacturers are encouraged to carry out promotional activities in the region to benefit the public. Further, consumers who are considering purchasing new energy vehicle or fuel vehicle will also be tempted by a government subsidy, particularly a 10,000 yuan ($1495.44) subsidy for those whose car price is less than 150,000 yuan, and 20,000 yuan for those whose car price is not less than 150,000 yuan.
The automobile industry is the pillar of the Jiading District’s economic development and the district is home to automobile companies such as SAIC Volkswagen and many other auto parts suppliers.
The Ministry of Finance and the State Taxation Administration of China have also announced a reduction of the vehicle purchase tax for some passenger cars. For those vehicles with a displacement of 2.0L and below (fewer than nine seats) and whose purchase date is marked between June 1 to December 31 in 2022, and whose unit price (excluding value-added tax) does not exceed 300,000 yuan, will see its vehicle purchase tax cut by half.
SEE ALSO: Shanghai Government Announces Action Plan for Economic Recovery
In the 12 new policies, large-scale e-commerce and commercial complexes are also encouraged to participate in organizing product promotions and prize-winning sales activities. Various online and offline consumption is actively being encouraged. In addition to promoting consumption, the new policies also involve supporting industries and other aspects, such as subsidizing the logistics costs and epidemic prevention costs of enterprises, opening up green financing channels and giving interest subsidies, and establishing a mutual insurance mechanism between industrial chain and supply chain in the Yangtze River Delta.