There are new changes in the reduction and exemption of purchase tax for new energy vehicles

Starting from January 1st, the purchase tax on new energy vehicles will continue to be implemented with tax incentives, while undergoing optimization and adjustment, from the previous full exemption to a limited exemption.
Vehicle purchase tax is a type of tax paid by units and individuals in China who purchase regulated vehicles. As consumers, when owning a new car, whether it is purchasing, importing, self-produced, receiving gifts, winning awards, etc., they are all required to pay taxes.
As an important means of regulating the vehicle market, the government will implement vehicle purchase tax incentives for certain vehicles as needed. New energy vehicles such as pure electric vehicles, plug-in hybrid vehicles (including extended range vehicles), and fuel cell vehicles have received significant support in recent years.
Starting from September 2014, China implemented the policy of exempting vehicle purchase tax on new energy vehicles. This policy, in conjunction with preferential policies such as financial subsidies for the promotion and application of new energy vehicles, has played a crucial role in rapidly cultivating the new energy vehicle consumption market and driving industrial development.
"Although the national subsidy policy for the purchase of new energy vehicles will expire by the end of 2022, the policy of reducing vehicle purchase tax on the purchase of new energy vehicles will be continued and optimized in 2024, which will further promote stable consumption of new energy vehicles and promote high-quality development of the new energy vehicle industry." said Shan Yu, Director of the Goods and Labor Tax Department of Changchun Taxation Bureau.
It is reported that starting from this year, the preferential policy for the purchase tax of new energy vehicles has changed from full exemption to limited exemption. According to the Announcement of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology on Continuing and Optimizing the Policy of Tax Reduction and Exemption for New Energy Vehicle Purchase, new energy vehicles purchased between January 1, 2024 and December 31, 2025 are exempt from vehicle purchase tax. The tax exemption for each new energy passenger vehicle shall not exceed 30000 yuan; The vehicle purchase tax will be halved for new energy vehicles purchased between January 1, 2026 and December 31, 2027. The tax reduction for each new energy passenger vehicle shall not exceed 15000 yuan.