The preferential purchase tax policy for passenger cars with a displacement of 1.6 liters or less, which was implemented in 2009, will end on January 1, 2011. At that time, the purchase tax for vehicles with a displacement of 1.6 liters or less will be levied at a rate of 10%. (Note: If you pick up your car and complete the relevant procedures for paying the purchase tax before December 31, 2010, you can enjoy a preferential policy of 2.5%)

　　The original text is as follows:

　　Finance and Taxation [2010] No. 127

　　To the Departments of Finance (Bureaus) and State Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities with independent planning status, and the Finance Bureau of the Xinjiang Production and Construction Corps:

　　With the approval of the State Council, the policy of levying a reduced vehicle purchase tax rate of 7.5% on passenger cars with a displacement of 1.6 liters and below will cease to be implemented after its expiration on December 31, 2010. From January 1, 2011, vehicle purchase tax will be levied at a unified rate of 10% on passenger cars with a displacement of 1.6 liters and below.

　　Ministry of Finance State Administration of Taxation

　　December 27, 2010