China Exempts Electric Vehicles From 10% Purchase Tax
As we’ve detailed in the recent past, China is taking some significant strides to support the roll out of electric vehicles.
The latest move by China is to waive a 10 percent purchase tax on electric vehicles “as part of expanded measures to combat pollution and cut energy dependence,” according to Bloomberg.
“New-energy autos — China’s term for electric cars, plug-in hybrids and fuel-cell vehicles — will be excluded from the levy from Sept. 1 to the end of 2017.”
Han Weiqi, a Shanghai-based analyst at CSC International Holdings, stated:
“The exemption will help spur demand for electric cars and plug-in hybrids by lowering the purchase cost. Still, it remains to be seen whether the latest measure will have a decisive impact given other types of funding have been in place.”
The tax exemption applies to all plug-in vehicles, including those imported from other countries, such as the U.S.-made Tesla Model S.