Auto sector tax income rises on output and sales

TAX revenue from the automobile industry in China surged in the first 10 months of this year as auto production and sales boomed in the world's largest market, the State Administration of Taxation said yesterday.

SAT said the value-added tax paid by the transport equipment manufacturing industry jumped 28.8 percent to 88.6 billion yuan (US$13 billion) during the period, and the business tax revenue was 30.7 billion yuan, a rise of 29.6 percent.

Meanwhile, tax income from automobile acquisitions rose 6.3 percent to 91.2 billion yuan, although taxation on the purchase of vehicles with engine displacements below 1.6 liters was cut by half.

The State Council, China's Cabinet, decided on the cut at the start of this year to stimulate domestic consumption.

Auto production and sales broke the 10 million mark in the first 10 months of this year.