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Exemption from Tax on Purchase of New Energy Vehicles

In order to implement the spirit of the 19th CPC National Congress and further support the innovation and development of new energy vehicles, the State Council agreed that the related issues of exemption of tax on purchase of new energy vehicles related are announced as follows:

I. From January 1, 2018 to December 31, 2020, the new energy vehicles purchased are exempted from purchase tax.

II. The new energy vehicles exempted from purchase tax shall be managed according to the List of New Energy Vehicle Models Exempted from Purchase Tax (hereinafter referred to as the List). The policy of exemption from vehicle purchase tax will remain in force for those new energy vehicles that have been listed into the List before December 31, 2017.

III. The new energy vehicles listed into the List from January 1, 2018 shall meet the following conditions at the same time:

1. The new energy vehicles are blade electric vehicles (BEV), plug-in (including extended-range) hybrid power vehicle and fuel cell vehicle (FCV) permitted to be sold in China.

2. They shall meet the technical requirements of new energy vehicle product.

3. They shall meet the special inspection standard for new energy vehicle products through the special test on new energy vehicles.

4. New energy vehicle manufacturers or imported new energy vehicle dealers (hereinafter referred to as enterprises) shall meet the relevant requirements in product quality assurance, product consistency, after-sales service, safety monitoring, power battery recycling and so on.

The Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information, and the Ministry of Science and Technology will adjust the conditions of new energy vehicles listed in the List according to the development of standard systems for new energy vehicles, technological progress and vehicle model changes timely.