China Extends NEV Purchase Tax Exemption Another Year

China’s Ministry of Industry and Information Technology and Ministry of Finance extended the exemption on 10% purchase taxes for new energy vehicles (NEVs) until the end of 2023 as the government plans to phase out a long-running subsidy program by year-end.

The government has been signaling the third extension of the purchase-tax exemption since July. In August, Premier Li Keqiang told a State Council executive meeting that the tax exemptions will amount to 100 billion yuan ($14 billion).