The federal government introduced that it’ll lengthen the short-term discount of the person consumption tax on cars, which was initially scheduled to finish on the finish of this yr, for an extra six months. The person consumption tax discount on energy era gasoline will finish as scheduled on the finish of December this yr.
The Ministry of Financial system and Finance introduced the “Versatile Tax Charge Operation Plan for the First Half of 2026” containing these particulars on Dec. 23. The federal government acknowledged, “We are going to assist the restoration of vehicle consumption,” and can preserve the versatile tax price on cars, which has been diminished by 30% from 5% to three.5%, for an additional six months. The discount restrict is 1 million received, which quantities to 1.43 million received when together with schooling tax and value-added tax.
The federal government firmly acknowledged that the short-term discount of particular person consumption tax on cars will function solely till the tip of June subsequent yr after which terminate. Whereas they’re extending it with the native elections scheduled for June subsequent yr in thoughts, they’ve made it clear that “this time is basically the final.” The auto business had been conducting large-scale promotional occasions at year-end, utilizing the tip of the short-term particular person consumption tax discount as a advertising level.
The federal government plans to overtake the assist system within the course of strengthening custom-made assist for weak teams, resembling increasing power vouchers, quite than blanket particular person consumption tax reductions that profit an unspecified variety of individuals. Together with this, the ministry plans to increase the short-term discount of gasoline tax on transportation gasoline for an extra two months till the tip of February subsequent yr. The discount charges will stay the identical as earlier than: 7% for gasoline and 10% for diesel and liquefied petroleum fuel (LPG) butane. A ministry official defined, “This takes under consideration oil worth volatility and the general public’s burden of gasoline prices.”
Nonetheless, the federal government acknowledged that it’ll terminate the short-term discount of particular person consumption tax on energy era gasoline (energy era liquefied pure fuel (LNG) and coal) launched to ease the burden of energy era prices for power public enterprises on the finish of this month. This determination was made contemplating that energy era gasoline costs have been secure just lately.
