China to extend purchase-tax waiver on NEVs to end-2023

The purchase date refers to the issuing date of valid documents such as unified invoices for motor vehicle sales or special payment letters for customs duties, according to a release on MOF's website.

NEVs qualified for the tax reliefs or waivers include pure electric vehicles, plug-in hybrid electric vehicles (including extended-range electric vehicles) and fuel cell vehicles listed in the catalogs issued by MIIT and State Administration of Taxation.

China's MIIT and taxation agency release the catalogs of auto manufacturers and their NEV models eligible for tax reliefs or waivers from time to time, and the latest list - the 58th batch - was posted on MIIT's website on September 15, Mysteel Global noted.

NEVs in the list of catalogs released prior to December 31 2022 will continue to be exempted from purchase taxes, according to the MOF release.

It's the third time for China to have extended the exemption of purchase taxes on NEVs since the country first introduced the policy in September 2014, as the latest tax exemption is set to expire by the end of this year.

"The extension of the policy is expected to further boost NEVs sales and benefit both NEVs manufacturers and consumers," a market source in Shanghai told Mysteel Global.

Over January-July, China sold 3.19 million units of NEVs, soaring by 120% on year. And the vehicles were exempted from purchase tax of Yuan 40.68 billion ($5.7 billion), a surge of 108.5% percent on year, according to the data from China Association of Automobile Manufacturers.