From July 1, China will drop again car import tariff from the present 28 percent to 25 percent, according to Xinhua. But market experts do not think 3-percentage-point's decline will have much influence on auto prices.

The previous decrease of the import duties was on January 1, when China cut it from 30 percent to 28 percent. This drop in import duties will be the last one and applies to all imported passenger vehicles.

With the implementation of the new consumer tax policy on April 1, imported cars with high emission are levied high consumer tax. Car prices rose by around 10 percent since then but then cars with high emission slipper soon after that.

Importers believe the new tariff policy will drag the prices of passenger cars down, especially sedans. They predict slight price cut for low emission cars while sharp plunge for heavy emission cars.

Although there is a reduction in duties, the comprehensive tax still keeps over 50 percent, said auto dealers. The tariff cuts will probably have more psychological impact than any real influence on consumers.

By People's Daily Online