China Exempts Acquisition Tax on New Energy Vehicles Including Electric Cars

Acquisition Tax Exemption Extended for 1 More Year... Exemption for Electric Vehicles, Plug-in Hybrid Vehicles, and Fuel Cell Vehicles
Acquisition Tax Exemption Beyond Subsidies to Boost Domestic Market

[Asia Economy Senior Reporter Cho Young-shin] The Chinese government has extended the exemption period for acquisition tax on electric vehicles (EVs) until the end of next year.

Photo by Global Times capture

On the 26th, according to Chinese economic media Caijing, the Ministry of Finance, Ministry of Industry and Information Technology, and the State Taxation Administration jointly announced that acquisition tax on electric vehicles will be exempted until December 31 of next year.

The Chinese government had originally planned to exempt acquisition tax on new energy vehicles, including electric vehicles, until the end of this year, but extended the exemption period by one more year to stimulate domestic demand. Along with subsidies for new energy vehicles, the exemption of acquisition tax is expected to further increase demand for electric and other new energy vehicles within China.

Pure electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles are subject to the acquisition tax exemption.