Are Hybrid Vehicles Exempt from Purchase Tax?

[SanEllie]

Hybrid vehicles are exempt from purchase tax as part of a national policy to encourage the production and sales of new energy vehicles. New energy sources such as electricity and solar power are environmentally friendly and help conserve non-renewable energy resources. Relevant document announcement: According to Document No. 21 of 2020 issued by the Ministry of Finance, from January 1, 2021, to December 31, 2022, new energy vehicles purchased are exempt from vehicle purchase tax. New energy vehicles exempt from purchase tax include pure electric vehicles, plug-in hybrid (including range-extended) vehicles, and fuel cell vehicles. Introduction to vehicle purchase tax: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China. It evolved from the vehicle purchase surcharge. The current basic regulations of the vehicle purchase tax law are implemented from January 1, 2001, under the "Interim Regulations of the People's Republic of China on Vehicle Purchase Tax."