CHINA TO OFFER TAX BREAKS ON ELECTRIC CARS
Last Friday, China announced that it will offer tax breaks on purchases of electric cars. Starting September 1, buyers of any of 17 models of approved vehicles will not have to pay sales tax. The tax break is the latest in a series of measures designed to promote all-electric and heavily electrified hybrid cars. Last year, China renewed a program through which buyers can receive subsidies of up to 60,000 yuan (US $9,767) for the purchase of all-electric cars, and last month the country ordered government officials to use more energy efficient cars. According to sources who asked not to be named, China is also considering providing as much as 100 billion yuan (US $16.25 billion) in government funding for the construction of electric vehicle charging facilities in an effort to spur demand for electric cars. Karsten Engel, head of BMW in China, predicted that China will become the world’s largest market for electric vehicles within five years. For the full story, see http://uk.reuters.com/article/2014/08/29/us-china-autos-idUKKBN0GT0UX20140829 and http://www.smh.com.au/environment/china-considering-16-billion-for-electricvehicle-chargers-20140827-108u53.html.