Chinese authorities on Monday said that purchase tax exemption policy for New Energy Vehicles (NEVs) would be extended to 2023.
This is contained in a statement released by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology on Monday.
According to the statement, the policy applies to purchases made in 2023 of specific NEVs outlined by an official list.
It said that the move seeks to support the NEVs sector’s development and stimulate automobile consumption.
The statement said that before the extension, the preferential tax policy for NEVs had already been extended twice and was due to conclude at the end of the year.
According to the statement, the latest extension is expected to waive 100 billion Yuan (about 14.23 billion dollars) of taxes.
It said that China’s NEVs sector had been growing fast this year. From January to August, the production of NEVs totaled 3.97 million units
The statement also said that the sales reached 3.86 million units, an increase of 1.2 times and 1.1 times, year-on-year, respectively
