Cui Dongshu: Suggest Incorporating Vehicle Purchase Expenses into Individual Income Tax Special Deductions

On April 11th-12th, the High-level Forum on the Development of Intelligent Electric Vehicles was held at the Beijing National Convention Center Phase II, with the theme of "Advancing the Intelligent, Green, Integrated, and International Development of New Energy Vehicles." Cui Dongshu, Secretary-General of the Joint Sub-Committee on Market Information of the China Automobile Dealers Association, stated that long-term policies need to provide certain support, such as including vehicle purchase expenses in individual income tax deductions and allowing pre-tax deductions for car consumer credit interest. These two are key long-term measures. For example, he pointed out that including vehicle purchase expenses in individual income tax deductions could allow high-income groups to deduct 30% of their income tax. This could potentially save thousands of yuan in taxes if they buy a luxury car for one million yuan, possibly shortening the car replacement cycle from seven years to five years and stimulating car consumption earlier. In addition, it is also necessary to deduct car consumer credit interest before tax, as banks are facing increasing difficulties in making profits from mortgage loans, and need to expand their business through car consumer loans, while also reducing the burden on consumers and stimulating car consumption.