China extended a tax cut on small-engine vehicles by one year on Thursday, a move industry executives said would help keep demand for automobiles stable and prevent sharp short-term fluctuations in the world’s biggest auto market.
China’s Ministry of Finance said on its official website the tax rate on small-engine vehicles, currently at 5%, will rise, but only to 7.5%. That rate, taking effect on Jan. 1, 2017, is still below its normal 10%.
