SHANGHAI (Reuters), China’s Ministry of Finance stated Tuesday that the country will halve the small-engine car purchase tax to help boost sales.

According to the government, the tax on cars with engines smaller than 2.0-liters will be reduced by 5%.

This tax reduction will apply to purchases made from June 1, 2022 until the end of 2019.

This was one of a number of steps China’s cabinet announced Tuesday in an effort to revitalize its economy after its strict zero-COVID policies had hampered production and dampened the demand over recent months.

After April’s sharp drop in auto sales, the government announced last week it would relieve 60 billion yuan-worth of taxes on car buyers.

The tax cuts will be a boon for the top-selling models of the group, including Sylphy by Nissan (OTC) and Lavida by Volkswagen (ETR)

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