China Extends Rebates for Electric-Car Purchases to Revive Sales

China agreed to extend tax breaks and subsidies on electric-vehicle purchases for two years to provide relief for the struggling industry in the wake of the coronavirus pandemic.

The government will keep waiving the 10% sales tax on EVs, a benefit that began in 2014 and was due to expire at the end of this year, through 2022, state broadcaster CCTV reported Tuesday, citing a state council meeting chaired by Premier Li Keqiang. The state council also agreed to prolong subsidies for EV purchases for two years, according to the broadcaster.

The measures, which also apply to fuel-celled ...