During January 1, 2026 to December 31, 2027 period, consumers who purchase models included in the Catalog of New Energy Vehicle Models Eligible for Vehicle Purchase Tax Reduction and Exemption will continue to enjoy the vehicle purchase tax reduction and exemption policy, according to the notice jointly issued by Ministry of Industry and Information Technology, Ministry of Finance, and State Taxation Administration of China.
Starting from January 1, 2026, the purchase of new energy vehicles will change from full exemption of purchase tax to a 50 percent reduction in taxation. The maximum tax exemption per vehicle will be adjusted from RMB 30,000 ($4,267) to a maximum tax reduction of RMB 15,000 ($2,134) per vehicle.