(Bloomberg) -- China is considered extending tax exemptions on electric-car purchases in a bid to boost spending on the auto sector by about 200 billion yen ($30 billion), state television reported, citing a State Council meeting chaired by Premier Li Keqiang.

Supportive policies such as waiving taxes would aim to bolster demand for so-called new energy vehicles as well as stimulate the used-car market, according to the CCTV report.  

Government subsidies introduced in 2009 to help the EV industry are already being withdrawn and are due to be phased out completely next year. The exemption on the 10% EV-purchase tax is due to expire at the end of 2022. 

Read more: China Automakers Join Government With Incentives to Boost Sales

Car sales in China have slowed as the country battled Covid-19 outbreaks with strict lockdowns that sapped consumer spending. Passenger vehicle sales slid 17% in May from a year earlier. Not a single new car was sold in Shanghai in April as the virus gripped the city.

China has already said it would halve the purchase tax on low-emission passenger vehicles with no more than nine seats that were sold from June to December for 300,000 yuan or less.

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