China extends purchase tax exemption for new energy vehicles

SHANGHAI, Jul 1 (SMM) – China will continue to waive purchase taxes on new energy vehicles (NEVs) until the end of 2020, the Ministry of Finance announced on Friday June 28.

The new vehicle purchase tax scheme, effective from July 1, remains unchanged at a rate of 10%, and covers automobiles, tramcars, trailers and motorcycles with a gas displacement of over 150 millilitres.

However, buyers of electric motorcycles, motorcycles with a gas displacement of no more than 150 millilitres, and trailers that are not for automobiles, will still be exempt from the tax.