Auto leaders propose tax breaks, new energy incentives at two sessions

Li has proposed that vehicle purchase tax, which is currently collected by the central government, should be shared by both the central and local governments.

Li said the move would increase local fiscal and tax revenue as well as improve local government's motivation in boosting car sales.

Purchase tax revenue totaled around 350 billion yuan ($49.05 billion) in 2019 and is estimated to reach 500 billion yuan in 2030.

Local governments can use the money to build roads, parking lots and electric vehicle charging poles, which will promote the industry's development, he said.

Li also proposed a proportion of the money should be earmarked for helping carmakers develop new technologies and spent as subsidies for more families to become car owners. Li's other proposals include removing the ban on motorcycles in cities.