What are the new policies for vehicle purchase tax in 2021?
3 Answers
The new policies for vehicle purchase tax in 2021, as outlined in the "Announcement by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology on Policies Regarding Exemption of Vehicle Purchase Tax for New Energy Vehicles" (Ministry of Finance Announcement No. 21 of 2020), can be summarized as follows: 1. From January 1, 2021, to December 31, 2022, new energy vehicles purchased will be exempt from vehicle purchase tax. The new energy vehicles exempt from vehicle purchase tax include pure electric vehicles, plug-in hybrid (including range-extended) vehicles, and fuel cell vehicles. 2. The exemption of vehicle purchase tax for new energy vehicles will be managed through the "Catalog of New Energy Vehicle Models Exempt from Vehicle Purchase Tax" (hereinafter referred to as the "Catalog"). The purchase date for tax-exempt models listed in the Catalog is the date indicated on the unified sales invoice (or valid certificate) of the motor vehicle. For new energy vehicles already included in the Catalog, relevant automakers and new energy vehicle dealers need to complete the necessary tax exemption identification procedures to qualify for the vehicle purchase tax exemption. 3. Automakers must ensure that the vehicle electronic information matches the vehicle product. Any loss of vehicle purchase tax revenue due to the provision of false information or materials will be dealt with in accordance with the "Law of the People's Republic of China on the Administration of Tax Collection" and its implementing regulations. 4. Personnel responsible for managing the Catalog, reviewing tax exemption identifications, and processing tax exemption procedures must perform their duties lawfully. Any illegal or disciplinary actions, such as abuse of power, dereliction of duty, or malpractice for personal gain, will be subject to legal liability under relevant national laws, and cases suspected of criminal activity will be transferred to judicial authorities. This announcement takes effect from January 1, 2021. The policy of exempting vehicle purchase tax for new energy vehicles already included in the Catalog before December 31, 2020, remains valid.
I've been keeping an eye on car purchase policies. In 2021, there weren't major changes to the vehicle purchase tax—it basically continued the previous preferential policies. New energy vehicles like pure electric or plug-in hybrid cars are still exempt from purchase tax, which can save you about 10% of the car's price. For example, buying a 300,000-yuan Tesla could save you 30,000 yuan. For gasoline cars, the tax is generally 10% of the car's price, but if the engine displacement is below 1.6 liters, the tax rate might sometimes be lower. The government implements this mainly to encourage environmental protection and promote new energy vehicles. Don't overlook the practical impact—when buying a car, the salesperson usually helps calculate the tax, but it's best to check the Ministry of Industry and Information Technology's website to confirm the list and avoid being misled. Remember, policy details might have minor adjustments, but they remain relatively stable throughout the year, which doesn't affect most people's car-buying decisions. Saving money is great, but you should also consider insurance and registration fees.
As someone who frequently studies automotive economics, I believe the focus of the 2021 vehicle purchase tax policy remains unchanged, with its core being the tax exemption for new energy vehicles. Pure electric or hybrid vehicles are exempt from the 10% tax, and the money saved can be used for car loans or insurance. Conventional gasoline vehicles still face a 10% tax rate, though models with engines below 1.6L may enjoy a half-price discount. The policy directly aims to promote green transportation, and the government is also increasing efforts in charging infrastructure. When buying a car, don’t just focus on the tax—double-check the purchase invoice and tax regulations to avoid minor discrepancies. Personally, I think this stimulates the electric vehicle market. With consistent policies throughout the year and no major fluctuations, buying early means enjoying the benefits sooner.
