China to Lift Import Tax on Auto Parts

16/02/2005

Import tax on some auto parts may be tripled to 30 percent of the price, from the current level of ten.

China's Ministry of Commerce says it has decided to impose import duties on auto parts instead of the complete vehicle.

These higher duties will apply to the auto body, engines, chassis, variable transmission, turn-around and trigging systems.

Ministry officials say the new tax accords with international convention and is a helpful way to prevent tax losses caused by autos assembled with imported parts.