Is There No Purchase Tax for New Energy Vehicles?
2 Answers
According to the "Announcement on Exempting New Energy Vehicles from Vehicle Purchase Tax," from January 1, 2018, to December 31, 2020, the purchase tax on new energy vehicles is exempted. Vehicles exempt from purchase tax include pure electric vehicles, plug-in (including range-extended) hybrid vehicles, and fuel cell vehicles. Starting from January 1, 2018, new energy vehicles listed in the "Catalog" must meet the following conditions: 1. Authorization: Pure electric vehicles, plug-in (including range-extended) hybrid vehicles, and fuel cell vehicles authorized for sale in China. 2. Technical Compliance: Compliance with the technical requirements for new energy vehicle products. 3. Standards Met: Passing the special inspection for new energy vehicles and meeting the special inspection standards for new energy vehicle products. 4. Quality Assurance: New energy vehicle manufacturers or import dealers must meet relevant requirements in product quality assurance, consistency, after-sales service, safety monitoring, and power battery recycling.
Buying a new energy vehicle is indeed exempt from purchase tax! I’ve been keeping an eye on this policy because I hesitated when buying a car last year. To encourage environmental protection, the government introduced a policy years ago that completely exempts new energy vehicles from purchase tax—this is real savings. For conventional fuel vehicles, the purchase tax is 10% of the car’s price, meaning a ¥200,000 car can save you ¥20,000, which can be used for charging equipment or interior upgrades. Of course, policies may change—the tax exemption is currently in place until 2025, but if new energy vehicle sales surge in the future, the exemption might not last. I think this tax-free measure makes more ordinary families like mine willing to switch to new energy vehicles, especially since fuel costs are high now, and electric vehicles have lower daily maintenance costs. However, remember you still need to complete the registration process when getting your license plate—don’t assume tax exemption means no registration. In short, take advantage of this now—it’s a great deal.
