Accelerated release of the consumption potential of used cars: tax cuts to extend exports or fully open

Automobile is a strategic and pillar industry of national economy. Facing the problem of insufficient automobile consumption demand and large inventory pressure. Recently, many departments and local governments have issued promotional policies in order to activate the market. Among them, the used car market is also regarded as an important plate to drive automobile consumption.

Recently, the Foreign Trade Department of the Ministry of Commerce in response to the "Second-hand car export related matters Announcement (draft for comment)" (hereinafter referred to as the "Announcement" draft for comment "), open to the public for comments. The second-hand car export public soliciting opinions is considered by the industry to be a prelude to the country's readiness to fully liberalize the second-hand car export business after four years of pilot. Not long ago, the Ministry of Finance and the State Administration of Taxation determined that taxpayers engaged in second-hand car dealerships selling their purchased second-hand cars will enjoy the policy of VAT reduction at 0.5% until December 31, 2027.

"The state has released many good news to promote consumption in the used car market, mainly because the used car market has huge potential and development space." The used car market can not only solve people's transportation needs, but also promote the circular development of the automobile industry. At present, the difficulties and pain points of the development of the second-hand car industry mainly include asymmetric information, opaque transactions, and unreliable vehicle conditions.