What is the new policy on vehicle purchase tax for passenger cars in 2021?

[Vickie]

The new policy on vehicle purchase tax for passenger cars in 2021 is as follows: According to the "Announcement on Policies Regarding Exemption of Vehicle Purchase Tax for New Energy Vehicles" (Ministry of Finance Announcement No. 21 of 2020) jointly issued by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology, the following new measures can be summarized: 1. From January 1, 2021, to December 31, 2022, the vehicle purchase tax will be exempted for new energy vehicles. The new energy vehicles eligible for exemption 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 of tax-exempt models listed in the Catalog shall be the date specified on the unified invoice for motor vehicle sales (or valid proof). 3. 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. 4. Automakers must ensure that the vehicle electronic information matches the vehicle product. Any loss of vehicle purchase tax revenue due to providing 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 implementation rules. 5. Personnel involved in the management of the Catalog, review of tax exemption identification, and handling of tax exemption procedures who commit illegal or disciplinary acts such as abuse of power, dereliction of duty, or malpractice during their duties will be held accountable under relevant national laws. Cases suspected of criminal offenses will be transferred to judicial authorities. 6. This announcement shall come into effect on January 1, 2021. The policy of exempting vehicle purchase tax for new energy vehicles listed in the Catalog before December 31, 2020, remains valid.