(Yicai Global) July 7 -- China is considering to prolong its purchase tax exemption for electric vehicles to spur car buying. The government could also guide charging facility operators to cut service fees, the commerce ministry and 16 other departments said in a document released today.

Since 2014, China has exempted new energy vehicle buyers from a 10 percent auto purchase tax, and extended the policy in 2017 and 2020 to advance a shift from fossil fuel-powered cars to NEVs. The policy is due to expire in December.

More than 3.5 million NEVs were sold in China last year, with the tax break saving buyers over CNY50 billion (USD7.5 billion).

The document also pointed out that rural areas are encouraged to issue regional policies to boost sales and guide car manufacturers to offer bigger discounts.

The government also supports the installation of charging facilities in residential areas, parking lots, gas stations, highway services, as well as passenger and freight terminals. And it encourages car culture-oriented tourism, motorsport events and self-driving sports camps.

Financial institutions are urged to offer more car loans with reasonable terms for interest rates, down payments, and repayment periods, the document added.

China had 406 million registered motor vehicles as of Dec. 31, according to the public security ministry. Some 310 million were autos and 10 million, or 3 percent, were NEVs.

Editor: Emmi Laine, Xiao Yi