What Does a Tax-Reduced Vehicle Mean?

[Kelly]

Automobile tax reduction refers to the partial exemption of fees that should be paid for a vehicle. Below are specific details about tax-reduced vehicles: 1. Background: To promote the development of energy-saving and new energy vehicles and ships, in accordance with Article 4 of the "Vehicle and Vessel Tax Law of the People's Republic of China" and Article 10 of the "Implementation Regulations of the Vehicle and Vessel Tax Law of the People's Republic of China," and approved by the State Council, starting from January 1, 2012, energy-saving vehicles and ships are subject to a 50% reduction in vehicle and vessel tax, while new energy vehicles and ships are exempt from vehicle and vessel tax. 2. Management Regulations: For energy-saving and new energy vehicles and ships eligible for tax reduction or exemption, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology jointly issue the "Catalog of Vehicle (Ship) Models Eligible for Vehicle and Vessel Tax Reduction or Exemption for Energy-Saving and New Energy Vehicles (Ships)" to implement management.