(Yicai Global) Dec. 28 -- China will continue to waive the purchase tax on new-energy vehicles for another three years to support innovation in the Industry.
NEVs bought by domestic consumers between January 1, 2018 and December 31, 2020 will be exempt from the tax, the Ministry of Finance, State Administration of Taxation, Ministry of Industry and Information Technology, Ministry of Science and Technology, and other authorities said yesterday.
China levies a 10 percent tax on vehicle purchases. The government rolled out a plan in September 2014, exempting eligible NEVs from the duty. That policy was set to expire at the end of this year.
NEVs that authorities classified as eligible will remain eligible. Pure electric vehicles, plug-in hybrids and fuel cell vehicles licensed for sale in China must meet technical requirements and special inspection standards to be added to the list of automobiles approved for the exemption.
Pure electric cars must have a range of at least 100 kilometers, be able to cruise at 100 kilometers per hour or faster for 30 minutes and have a battery system with an energy density of at least 95 watt-hours per kilogram.