Research On The Fiscal And Taxation Policies To Push The Development Of New Energy Automobile Industry

Since 2009, China has become the world’s largest car_producer. Recently, China automobile production and sales have a growth spurt. On average, annual production and growth rate are over 10% and by the end of 2014, the automobile ownership exceeded 150 million. The automobile industry has become China’s pillar industry and the rapid growth of it stimulates China’s economy to a great extent. However, it also comes with other serious problems such as energy shortage and pollution. On the one hand, China’s energy supply has become tighter and its dependence on foreign oil supplier continues to increase, which is 59.6% in 2014. China has become the world’s largest importer of oil and the world’s second largest oil consumer. On the other hand, air pollution resulting from vehicle exhaust emissions has become serious problems. Thus the new energy vehicles with energy saving and exhaust emission control has become the new direction of the automobile industry, which has been incorporated into the new strategies for industry development in the Twelfth Five-Year Plan along with a package of fiscal and taxation policies to ensure the implement of new strategy. However, automobile ownership is still low. In addition, comparing with the developed countries, fiscal and taxation policy in China also has some defects to a certain extent, restricting further development of the industry.Overall, the current study analyzes advantages and disadvantages of China’s new energy vehicle fiscal policies by learning the experience of other countries such as Europe and Japan, and suggests better fiscal and taxation policy to further develop our new energy automobile industry. The structure of the study is as follows:Chapter 1 introduces the background and importance of this study, reviews the literature of relating research, states the main idea and structure of this study, and finally points out the pros and cons. Chapter 2 introduces the theoretical background. Specifically, by explaining the influence of government in guiding the market using external theory and sustainable development theory, I demonstrate the necessity and importance of fiscal and taxation policy in new energy automobile industry. Chapter 3 discusses the history of China’s fiscal and taxation policy of new energy automobile industry. Our fiscal and taxation policy has a lot of issues although it did work to some extent. I then summarize these issues from both fiscal and taxation policy perspectives. Chapter 4 explains the fiscal and taxation policies in develop countries such as the U.S., EU and Japan, and finds the implications in China. Chapter 5 suggests new fiscal and taxation policy that could help the development of our new energy automobile industry.