ECONOMY

Vehicle-scrapping fails to rekindle car market

The government?s vehicle-scrapping incentive has failed to breathe new life into the local car market, with the number of new licenses for private cars showing a 36.8 percent decline in the first eight months of the year compared with the same period in 2010.

The first month following the application of the measure, which involves providing cash incentives to those who pull their old cars off the road to get new ones, saw a 30 percent rise in new car sales.

However, the announcement of additional tax burdens has once again frozen the market, which had only seen 80,131 new licenses issued for private cars in the year to August. In the last couple of years, 17 changes have been made to car taxation.