China is to waive the purchase tax applicable to new cars when buying electric or other "new energy" vehicles.
The move comes as mounting pressure builds for China and other world leading countries to cut down their pollution.
According to Chinese state media, the tax is equivalent to 10% of the vehicle value, a large saving for buyers.
The Guardian writes that China has set a target for five million "new energy" vehicles to be on the roads by 2020, however only 70,000 are currently used. This number casts a shadow on an otherwise promising scheme.
The saving offered by the waiving of the tax will doubtless encourage buyers, and is a measure that perhaps should have been introduced earlier. It is available from 1 September this year, through to the end of 2017.
The UK have a scheme in place to encourage electric car purchases, where "plug-in" cars are eligible for a Government grant of up to 25% of the vehicle cost. The restrictions placed on the grant include a prescribed list of vehicles, and the grant contribution maximum is £5000.
