Expert suggests extending NEV purchase tax exemption policy

Shanghai (Gasgoo)- Wan Gang, vice chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and president of China Association for Science and Technology, suggested at an industrial conference that China’s new energy vehicle (NEV) purchase tax exemption policy should be extended beyond 2022 to increase support for the development of the NEV segment.

The exemption policy on NEV purchase is due to expire at the end of 2022. Here NEV refers to battery electric vehicle, plug-in hybrid electric vehicle (including range-extended electric vehicle) and fuel cell electric vehicle.  

At the 11th China Auto Forum organized by the China Association of Automobile Manufacturers (CAAM), the expert said that China’s NEV industry is in urgent need of further improving its strategic positioning and continuous support to strengthen its technology and supply chain.

Relevant departments are advised to speed the study and formulation of supporting policies in post-subsidy era and to maintain the fiscal, tax, and financial policy support for public services which use NEVs, such as bus, logistics, taxi. And also systematic policies should be formulated rapidly to support the carbon peak and carbon neutrality goals.

In core technologies, the expert thought companies and institutes should further increase the energy density of lithium-ion batteries, safety and environmental adaptation and meanwhile make plans for the development of other battery technologies, like solid battery. The biggest auto market in the world should make continuous efforts to master core technologies in such fields as Electrical/Electronic Architecture, automotive chip.