China Offers Tax Break on Electric Cars
July 10, 2014 Taxation in China
BEIJING – Electric vehicles are about to become cheaper in China as the government pairs subsidies with a new purchase tax waiver.
In a statement issued on July 9th the government of China confirmed that from September 1st this year to the end of 2017 the 10 percent purchase tax on any electric vehicles will be waived.
The exemption will be applied to the sale of all hybrids, plug-in hybrids, fully electric cars, and fuel-cell cars sold within the specified time period.
The government hopes that lowering the purchase price of environmentally friendly cars will work in unison with already instated subsidies to help spur sales, in order to reach the government’s target for the sale of low-emissions vehicles.
It is expected that the move to help improve the sale of innovative green cars will also encourage more manufacturers to develop even more efficient vehicles and to embrace new technologies, further encouraging growth in the country’s manufacturing and high-tech sectors.
It is estimated that 50 000 electric vehicles are currently in use in China, while the government had previously aimed to see at least 500 000 such cars on the road by the end of 2015.
Photo By: Robert Scoble