China MOF Announces Extension, Amendment of Motor Vehicle Purchase Tax Exemption for New Energy Vehicles

The Chinese Ministry of Finance June 21 announced the extension and amendment of the motor vehicle purchase tax reduction and exemption for new energy vehicles. The announcement includes: 1) a vehicle purchase tax exemption, of up to 30,000 Chinese yuan (US$4,178), for new energy passenger vehicles purchased between Jan. 1, 2024, and Dec. 31, 2025; 2) a 50 percent vehicle purchase tax reduction, of up to 15,000 yuan (US$2,089), for new energy passenger vehicles purchased between Jan. 1, 2026, and Dec. 31, 2027; 3) definitions and qualification criteria for new energy vehicles; 4) rules for determining the taxable purchase price ...