Do electric vehicles need to pay vehicle purchase tax?
1 Answers
Electric vehicles listed in the new energy vehicle catalog are exempt from purchase tax when being registered. More details about purchase tax are as follows: 1. Introduction: Vehicle purchase tax is a tax levied on entities and individuals purchasing specified vehicles within China, evolved from the vehicle purchase surcharge. It was implemented on January 1, 2001, in accordance with the "Vehicle Purchase Tax Law of the People's Republic of China". 2. Purpose: Vehicle purchase tax is levied on users of taxable vehicles at the consumption stage, better reflecting the principle of fairness. The principle of fairness aims to protect legal income, ban illegal income, rectify unreasonable income, and regulate excessive income. Therefore, imposing vehicle purchase tax can regulate excessive consumption expenditure. It also embodies the principle of taxation capacity, meaning higher-income individuals bear more tax, lower-income individuals bear less tax, and those with higher consumption capacity bear more tax than those with average consumption capacity.