From 1 January 2018 to 31 December 2020, new vehicles will receive the free purchase tax
Promote the use of future mobility. Chinese authorities have announced that tax exemptions on purchases of new energy vehicles (NEVs) will continue until 2020 to increase the country’s green development and maintain a strong internal market.
To continue this policy is the Ministry of Finance and the administration of state taxes, which confirmed that from 1 January 2018 to 31 December 2020, new energy vehicles will enjoy the free purchase tax.
In the first four months of the year China recorded strong growth in NEV sales
For many years, China has intensified efforts to promote the use of NEVs. The aim is to alleviate pressure on the environment by offering tax exemptions and discounts on car purchases. The government has also encouraged car manufacturers to build more NEV factories and improve technology.
In the first four months of the year, China recorded strong sales growth of NEVs with 360,000 NEV sold, up 59.8% compared to the same period of the previous year. The government announced measures to increase car sales earlier this month, such as banning local governments from imposing a limit on consumption and use of NEVs.
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