China, the world's second largest auto market, will slash import taxes on cars and auto parts from July 1 to comply with Beijing's commitment to the World Trade Organisation.
With the Chinese government's approval, the Customs Tariff Commission of the State Council has decided to lower the tariffs on cars, sports utility vehicles and mini-buses from 28 per cent to 25 per cent, the ministry of finance said.
The import taxes on auto parts like auto bodies, underpans, medium and low emission gasoline engines will be reduced to 10 per cent from a range between 13.8 per cent and 16.4 per cent.
The move was made to comply with the country's commitments on tariff reduction upon its entry into the WTO in 2001, Xinhua news agency said.
The latest tariff cuts came only six months after China slashed import tariffs on more than 100 categories of products beginning January 1, involving vegetable oil, raw chemical materials, automobiles and parts.
The import tariff rate for sedans, mini-buses and cross-country vehicles was lowered from 30 per cent to 28 per cent since January 1, while that for auto parts such as gear boxes, absorbers, radiators, clutches and steering gears was cut from 13.5 per cent to 10 per cent.
Meanwhile, China imported 87,000 motor vehicles in the first five months of 2006, a year-on-year increase of 80 per cent, according to a news release from the General Administration of Customs.
The country's imports of motor vehicles was 15,000 in May, a drop of 28.6 per cent from April.
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