China to exempt NEV purchase tax for another 3 years

Shanghai (Gasgoo)- China’s Ministry of Finance announced on Wednesday that the new energy vehicle (NEV) purchasing tax exemption will be continued for another 3 years, from the first day of 2018 to the last day of 2020.

The ministry said that it will manage the tax-exempted vehicle through the model catalogue. The policy is also valid for the vehicles which have been listed on the catalogue before the last day of December, 2017.

According to the statement, the extension is set to support the development of new energy vehicles in China. Cui Dongshu, secretary-general of the China Passenger Car Association, said the policy will boost the sales and development for new energy vehicles. The strong momentum of NEV sales in this year is a testament to the effect of the government’s tax exemption policy.

The first eleven months saw a slower growth of vehicle sales. According to the China Association of Automobile Manufacturers, by the end of November, the cumulative vehicle sales reached 25.84 million units, up 3.6 percent year on year. But the new energy vehicle sales jumped 51.4 percent to 609,000 units and are expected to hit the target of 700,000 units this year.