Lagging dividends: The realistic dilemma and reform suggestions for the tax-free car policy for overseas returnees
Shiming Huang
Sehan University
Giyoung Chung
Sehan University
DOI: https://doi.org/10.59429/bam.v8i1.13608
Keywords: tax-free car for returnees; institutional mismatch; reform suggestions
Abstract
With the widespread adoption of new energy vehicles (NEVs) and the significant increase in the localization rate of the automotive industry, the tax-free car policy for overseas returnees is currently facing severe "functional failure." This paper analyzes the disconnection between the regulatory logic of "imported parts" and the current industrial reality, which hinders the inclusion of domestic brands. Furthermore, it examines how universal green tax incentives and market price wars have triggered a crowding-out effect and price inversion regarding the exclusive benefits of the policy. To restore the incentive efficacy of the policy, this paper suggests abolishing the restriction on imported parts, shifting the approval focus to tax authorities, and extending the policy's validity period to align with the development of New Quality Productive Forces.
References
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