China’s New Measure for New Energy Automobiles†
Digest | 文摘
China’s Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology jointly announced in September 2022 that new energy automobiles purchased in 2023 will be exempt from automobile purchase tax. The explicit goals of this policy are to “support the development of the new energy automobile industry and promote automobile consumption”.
The Chinese government made similar announcements in 2014 and 2018, granting tax exemptions for new energy automobiles purchased from September 1, 2014 to December 31, 2017 and from January 1, 2018 to December 31, 2020, respectively. To what extent have these tax exemptions announced in 2014 and 2018 helped China meet its carbon reduction targets? The answer to this question can provide a clearer benchmark for assessing the potential impact of this latest round of tax exemptions. More importantly, have new energy automobiles been proven to be a truly effective means for a country to reduce its carbon emissions?
† This piece was contributed by Jingjia (Violet) Zhang and edited by SINOTALKS.COM.
Consultation, Training, & Speaking Engagements
If you need strategic solutions to problems affecting your business/professional activities in China and/or beyond, contact us at firstname.lastname@example.org. We will be delighted to offer our assistance through consultation, customized training, and/or speaking engagements.