China exempts over $12b purchase tax of NEVs in 2022

China exempted the purchase tax of new energy vehicles (NEV) for more than 80 billion yuan ($11.9 billion) in 2022 as an effort to boost low-carbon growth and NEV consumption, figures from State Taxation Administration showed on Friday.

Figures showed that, in 2022, China exempted the purchase tax of NEV for as much as 87.9 billion yuan, marking a 92.6 percent year-on-year growth. Such a tax exemption directly lowered the cost that car buyers had to afford when purchasing an NEV.

China started to exempt purchasing tax on NEV buyers from 2014. Last September, such an exemption policy got an extension and will last till the end of 2023.

zhangyue@chinadaily.com.cn