China today announced: Starting on September 1, it will charge no sales tax for electric cars (including imported EVs), in order to boost the environmental-friendly auto industry. So the price tag of a Tesla Model S will be around 10% cheaper than the present price after removing the sales tax.
No sales tax in China is good news? So sales tax in the US is bad news? You betcha. Because of sales tax, you can add another 6, 7, 8, 9 thousand on to the purchase price of a Tesla. Now that is some really bad news.
China has a strong central government which can actually make sound long term policy decisions. They allow their corporations to make money, but they don't let them call all the shots.
For example, to cool their housing bubble they started requiring 20% down payments on any purchased houses or condo and 50% down on a second house. (to discourage speculation) The builders & other vested interests grumbled, but they got over it.
Also, when serious corporate fraud is uncovered, like the tainted milk scandal, the death penalty is occasionally handed out to the perpetrators. In the US, we only execute the poor. Can you imagine the former head of GM being executed for that awful ignition switch fiasco? It would *NEVER* happen.
Sure, they have problems with corruption (though I think corruption in the US is worse) but they are at least making a serious effort to act in the long term best interests of their country. Our US government is largely AWOL when it comes to long term policies on anything of substance.... (they can't even get their act together well enough to agree on how to reform our broken health care system)
China wants to replace the gas burning vehicles with EVs as quickly as possible due to its badly polluted air. Tesla will have a great future in the world's largest auto market. Wonderful days ahead for TSLA.