NEVs exempt from vehicle purchase tax policy extended to the end of 2023

Recently, in order to cultivate new economic growth points, promote the consumption of new energy vehicles (NEVs) and green low-carbon development, the State Council executive meeting decided to continue the implementation of NEVs exempt from vehicle purchase tax policy until the end of 2023. This is the third continuation of the policy after the first implementation of the NEVs purchase tax exemption policy in China in 2014.

Since the implementation of the NEVs exempt from vehicle purchase tax policy, the effect has continued to emerge, stimulating the potential of NEV consumption. Data from the State Taxation Administration shows that from January to July this year, NEVs were exempted from vehicle purchase tax of 40.68 billion yuan, an increase of 108.5% year-on-year, of which 7.17 billion yuan was exempted from vehicle purchase tax in July, an increase of 119.1% year-on-year. Data from the China Association of Automobile Manufacturers shows that from January to July this year, sales of NEVs reached 3.194 million units, up 1.2 times year-on-year.

The person in charge of the relevant departments and bureaus of the State Taxation Administration said that announcements will be issued jointly with the Ministry of Finance in a timely manner. The Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax will be continuously and dynamically updated. The tax exemption mark will be added to the electronic information of the vehicle's certificate of conformity to realize automatic identification in the declaration, simplify the tax procedures and allow taxpayers to enjoy tax dividends quickly. And contribute taxation power to support the development of NEV industry, promote the strategic transformation of energy and stabilize the macro economy.