On September 26, China’s Ministry of Finance (MOF), the State Administration of Taxation and Ministry of Industry and Information Technology (MIIT) issued a joint notice, announcing that new energy vehicles will be exempted from the vehicle purchase tax policy from January 1 to December 31, 2023, in a further extension of the exemption in question for NEVs.
The purchase tax exemption for NEVs had already been extended twice previously. It was first implemented in 2014, due to expire at the end of 2017, but was extended to the end of 2020 and later further extended to the end of 2022.
The policy has effectively stimulated NEV consumption. For instance, NEV output and sales in the January-August period this year amounted to 3.97 million units and 3.86 million units, while the market share of NEVs reached 22.9 percent.
Moreover, the MIIT is optimizing the layout of the industrial chain, improving the standards system and working with relevant departments to further expand the scale of promotion of NEVs, and is encouraging local governments to introduce more policies to promote the consumption of NEVs.