BEVs and Plug-in EVs to Be Exempted of Purchase Tax
04 July 2012
www.chinabuses.org: Chinese buyers of battery electric vehicles and plug-in hybrid electric vehicles will be exempted of the vehicle purchase tax during the 2011-2020 period, reported Shanghai Securities News.
The Energy-Saving and New Energy Vehicle Development Plan (2012-2020), which was approved by the State Council in April, is expected to be officially released in the near future, said the newspaper, citing Zhang Xiangmu, director of Equipment Industry Department of the Ministry of Industry and Information Technology.
The Plan will cover a series of encouraging policies to boost the country’s new energy vehicle development. Besides the purchase tax exemption, the purchase tax, excise tax and the new vehicle and vessel tax for fuel efficient vehicles will be halved between 2012 and 2015.
Also according to the Plan, from 2011 to 2020, the value added tax rate for enterprises selling renewable energy cars and key parts will be set at 13 percent, dropping 4 percentage points from the previous level.
The Plan said as of 2020, one or two automobile enterprise groups with a production capacity of more than one million new energy cars as well as three to five automobile enterprise groups with a production capacity of 500,000 new energy cars will be formed.
In May, Vice Minister of Finance Zhang Shaochun said China will allocate an annual fund of up to ¥2 billion ($316 million) from this year to help develop new energy vehicles to cut fuel consumption and carbon emissions.
Source : china auto review
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