News from the national taxation department: The municipal taxation department has proposed to the State Administration of Taxation that it is recommended to cancel all motorcycle purchase tax and cancel the consumption tax on displacement below 250 ml. At the same time, it is recommended that the preferential tax policy for the development of the western region should continue until 2012. According to reports, the financial crisis has led to a slump in foreign motorcycle consumption, and Chinese motorcycle sales have been directly affected.

 

　　More than 1,000 motorcycle companies in Chongqing generally experienced sharp declines in export orders, underemployment and even layoffs. At present, motorcycles under 250 ml are subject to a 3% consumption tax, and motorcycles over 250 ml are subject to a 10% consumption tax. The consumption tax is paid by the production enterprise, and the purchase tax is paid by the consumer. Motorcycle companies in our city have already called for the cancellation of purchase tax and consumption tax on motorcycles under 250 ml, and subsidized motorcycles in the national catalogue of “going to the countryside to support agriculture” to stimulate consumption in the domestic market.

 

　　At present, the automobile consumption tax of 1L or less is only 1%, while the motorcycle is 3% and 10%. If the State Administration of Taxation adopts this opinion, then if a motorcycle with a price of 4,500 yuan is purchased, the consumer can reduce the expenditure by 450 yuan, while the motorcycle enterprise can save the consumption tax of 135-450 yuan.