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China seeks public opinion on subsidy program for auto replacement

(Xinhua)
Updated: 2009-06-28 11:04

BEIJING -- Chinese government has begun to seek public opinion on subsidy program for auto replacement, amid a slew of measures to stimulate private spending and curb pollution.

Related readings:  China's auto import volume down 30% in first 5 months  China auto sales may touch 11m in '09  Chinese auto firms headed for tougher times  Source: Beijing auto firm eyeing Ford's Volvo

According to a joint circular issued by the Ministry of Commerce and the Ministry of Finance on Friday, automobiles should meet the following requirements to be replaced with new set: the light truck and mid-sized taxi with less than eight years of use, mid and small-sized truck and mid-sized passenger car (exclude taxi) with less than 12 years of use.

Vehicles that fail to meet the European No.1 standard for exhaust emissions could also be replaced even they are still within life expectancy. The subsidy will be no more than the purchase tax of the auto of the same type.

According to the drafted regulation issued by the National Development and Reform Commission (NDRC), the country's top economic planning body on June 3, consumers would get rebates from 3,000 yuan (US$437.96) to 6,000 yuan for auto replacement.

Consumers should deliver their old model to the reclaim station in a year through May 31, 2009, said the circular.