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China's NEV purchase tax exemption nearly doubles in 2022

Visitors view a new-energy vehicle displayed at the 2022 World Manufacturing Convention in Hefei, east China's Anhui Province. Photo by Xinhua/Zhou Mu.
Visitors view a new-energy vehicle displayed at the 2022 World Manufacturing Convention in Hefei, east China's Anhui Province. Photo by Xinhua/Zhou Mu.

China's purchase tax exemption for new-energy vehicles (NEVs) soared 92.6% year on year in 2022 amid the country's efforts to promote automobile consumption, official data shows. This was reported by The Xinhua News Agency.

A total of ¥87.9 bln (about $13.06 blin) of the tax was waived last year, according to the State Taxation Administration.

To shore up the development of the NEV sector, China has been implementing the purchase tax exemption policy since 2014. In September 2022, it extended the preferential tax policy to the end of 2023.

"Tax authorities will strengthen related publicity, simplify taxation procedures and facilitate quick tax payment and vehicle registration for consumers", – said Shen Xinguo, an official with the administration.

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China's NEV sales came in at about 6.89 mln units in 2022, skyrocketing 93.4% year on year, according to the China Association of Automobile Manufacturers.

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