Ministry of Finance and State Administration of Taxation officials last week announced that the policy of preferential purchase tax for small-displacement cars was abolished as of January 1, 2011. As a result, a 10 percent purchase tax rate will be levied on buyers of small-displacement cars, up by 2.5 percent. Some experts in the automobile industry said that although they expected a slight slowdown in the growth of small car sales in 2011 they believe that overall sales volume is still on the rise.
