Are There Purchase Taxes for Hybrid Vehicles?
2 Answers
First, it is necessary to clarify which type of hybrid vehicle is being referred to before determining whether a vehicle purchase tax is required. The state exempts three types of new energy vehicles—pure electric, plug-in hybrid that meet certain conditions, and fuel cell vehicles—that have obtained sales permits in China from the vehicle purchase tax. Hybrid vehicles are oil-electric hybrid cars that consist of a fuel engine and an electric motor. The fuel engine uses diesel or gasoline, making this type of vehicle a hybrid. The electric motor is powered by a battery. These models offer excellent fuel efficiency and more robust driving power. The vehicle purchase tax is a tax levied on units and individuals purchasing specified vehicles within China, evolving from the vehicle purchase surcharge. The automobile purchase tax is 8.55% of the bare car price. Each vehicle model has a minimum tax standard; if the actual tax is lower than the minimum amount stipulated by the state, the state-regulated amount will be charged.
Last time I bought a hybrid car, I researched the purchase tax issue. Purchase tax is the tax paid when buying a car, generally 10% of the car's price. Whether hybrids are subject to this tax depends on the specific type: plug-in hybrids, like BYD DM-i or Li ONE, are currently mostly tax-exempt under the policy; non-plug-in hybrids, such as the Toyota Camry Hybrid, may still have to pay part of the tax. The government aims to encourage environmentally friendly vehicles through tax incentives, and buying a plug-in hybrid can save a lot of money. When I chose my car, I paid special attention to selecting a new energy-certified model, which saved me nearly ten thousand yuan in taxes. It's also fuel-efficient and has low emissions in daily use. I recommend checking the latest policies online before buying a car to see if the model meets the tax-exempt standards. Don't choose blindly—save money and be practical.
