What are the preferential policies for new energy vehicles?
3 Answers
On August 1, 2014, three ministries including the State Taxation Administration jointly issued the "Announcement on Exempting New Energy Vehicles from Vehicle Purchase Tax", stipulating that from September 1, 2014 to December 31, 2017, new energy vehicles purchased would be exempt from vehicle purchase tax: 1. Vehicle purchase tax: The "Announcement by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology on Exempting New Energy Vehicles from Vehicle Purchase Tax" stipulates that from September 1, 2014 to December 31, 2017, new energy vehicles purchased are exempt from vehicle purchase tax. New energy vehicles exempt from purchase tax include pure electric vehicles, plug-in (including range-extended) hybrid vehicles, and fuel cell vehicles (consistent with fiscal support standards); 2. Vehicle and vessel tax: The "Notice by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology on Energy-saving and New Energy Vehicle and Vessel Tax Policies" stipulates that "new energy vehicles and vessels are exempt from vehicle and vessel tax." This document clearly specifies that new energy vehicles include pure electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles (consistent with fiscal support standards). It also sets identification standards, such as power batteries excluding lead-acid batteries; plug-in hybrid vehicles must have a maximum electric power ratio exceeding 30%; etc. Subsequently, the three ministries jointly formulated two batches of the "Catalog of Energy-saving and New Energy Vehicle Models Eligible for Vehicle and Vessel Tax Reduction and Exemption", published in Announcements No. 7 and No. 25 of 2012 by the three departments. Only new energy vehicles listed in the catalogs can enjoy tax exemption benefits; 3. Value-added tax: According to the "Regulations on Pilot Value-added Tax Reform", VAT general taxpayers purchasing motorcycles, cars, and yachts for self-use that are subject to consumption tax can deduct the input tax. This regulation has been implemented since August 1, 2013.
Last year I bought a new energy vehicle and experienced various preferential policies. The most direct benefit was the purchase subsidy – the combined national and local government subsidies saved me tens of thousands. There's also full exemption from vehicle purchase tax, which is equivalent to a 10% discount on the car price; the annual vehicle and vessel tax is waived too, saving me hundreds each year. In major cities like Beijing and Shanghai, NEVs get license plates without lottery, making registration hassle-free and cost-effective. For daily driving, many places offer free parking and charging discounts, with charging stations increasingly available in residential areas and shopping malls. I've calculated – while the initial investment is higher, long-term electricity and maintenance costs are lower, making it very cost-effective overall. The government is also expanding infrastructure, making travel even more worry-free.
Choosing a new energy vehicle makes me feel both eco-friendly and cost-effective. The government provides strong support through subsidies, offering both national and local incentives when purchasing, significantly reducing the financial burden. In terms of tax exemptions, new vehicles are exempt from purchase tax and vehicle and vessel tax, lowering the initial investment by 10%-20%. As a resident, getting a license plate in Hangzhou is super fast, without the hassle of long queues like with fuel vehicles. During use, I enjoy free public parking spaces and discount coupons at charging stations. The country is also expanding charging infrastructure, making it even more convenient in the future. Overall, these policies not only save costs but also make green travel the norm, improving urban air quality.
