The Chinese central government has announced that it will make clean energy vehicles exempt from vehicle purchase taxes for three additional years starting in 2018.
On 27 December China’s Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology and the Ministry of Science and Technology jointly announced that clean energy vehicles would be exempt from vehicle purchase taxes from 1 January 2018 to 31 December 2020.
Beijing had previously launched a policy to make clean energy vehicles exempt from vehicle purchase taxes for the period from 1 September 2014 to 31 December 2017.
“The release of the new policy will significantly stabilise the attitudes of consumers towards the purchase of clean energy vehicles,” said auto industry analyst Yan Jinghui (颜景辉) said to National Business Daily.
“At the same time the policy reveals that regulators hope to stimulate the market and expand the scope of consumption, thus expediting the dilution of costs for electric vehicle manufacturers and raising technology levels, in order to eventually achieve a complete industry virtuous cycle.”