China mulls cheaper cars for officials

November 20th, 2011 - 4:56 pm ICT by IANS  

Beijing, Nov 20 (IANS) The Chinese government is planning to buy cheaper cars for official use. This is in line with the government’s plans to cut costs.

According to the plan, the cost of each vehicle bought for official use must not exceed 180,000 yuan ($28,300) and should have a maximum engine size of 1.8L.

The measure would see a reduction in the number of luxury cars used for public affairs or law enforcement.

Previously, the limit was 200,000 yuan per vehicle.

The order was issued by the industry and information technology ministry, the Shanghai Daily reported Sunday quoting representatives of the National People’s Congress.

The policy would prevent the government from purchasing SUVs and other luxury vehicles, as most have an engine size larger than 1.8L and cost over 180,000 yuan, said Ye Qing, a deputy of the National People’s Congress.

The measure comes after the finance ministry revealed in June that the total expenditure on vehicles, hospitality and receptions reached 9.47 billion yuan last year. Of which, 6.17 billion yuan was spent on vehicles.

Ye said the policy could save the country from 800 million to one billion yuan a year.

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