SHANGHAI, March. 22 (SMM) -It is argued that tax incentives for automobile purchases should be blamed for current serious traffic jams in cities. Li Yi, former Minister of the Industry and Information Technology (MIIT) agrees with such point.
China’s auto industry slipped into the red back in July and August of 2008 when the global financial crisis hit. Against this backdrop, Li Yi proposed the program of halving automobile acquisition tax. The program was introduced in the Chinese New Year of 2009, which was the peak period for auto purchases. China’s auto industry reversed losses in February 2009. Automobile output in China grew an astonishing 37% in 2009, against the slump in the world auto industry in the same year.