Today, let’s talk about the purchase tax on new energy vehicles. In fact, since 2014, the state has offered full purchase tax exemptions for new energy vehicles. This policy has been extended again and again, and this is the fourth time in total. Duoduo is a major contributor to the popularity of new energy vehicles.
From September 2014 to the end of 2023, you will basically not have to pay purchase tax when buying new energy vehicles. In 2023, a small restriction will be added - a maximum exemption of 30,000 yuan per vehicle (probably, cars with an invoice price of less than 339,000 yuan can enjoy full tax exemption). Not to mention, after these ten years of policy support, the sales of new energy vehicles in our country have been booming. From the beginning, less than 100,000 vehicles were sold a year, and by 2023, they will almost sell 8 million vehicles, which is definitely No. 1 in the world!
But by the end of 2023, everyone began to panic: Will this purchase tax reduction policy be continued? Will I have to pay full tax if I buy a new energy vehicle in the future? Because of this, many people are thinking about buying a car before the end of the year. Sales of new energy vehicles suddenly increased by 39.8% in November 2023, especially those more expensive cars. Many people are afraid that there will be no discounts in the future, so they are gathering together to place orders. At that time, Cui Dongshu of the Passenger Car Association also said that what everyone is most worried about is the return to full taxation after 2026. Especially those who are price-sensitive are afraid that the cost of buying a car will suddenly rise a lot.
Just when everyone is confused, the good news comes! In June 2023, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology jointly issued Announcement No. 10, which directly gave the market reassurance that the policy would not only be extended
Today, let’s talk about the purchase tax on new energy vehicles. In fact, since 2014, the state has offered full purchase tax exemptions for new energy vehicles. This policy has been extended again and again, and this is the fourth time in total. Duoduo is a major contributor to the popularity of new energy vehicles.
From September 2014 to the end of 2023, you will basically not have to pay purchase tax when buying new energy vehicles. In 2023, a small restriction will be added - a maximum exemption of 30,000 yuan per vehicle (probably, cars with an invoice price of less than 339,000 yuan can enjoy full tax exemption). Not to mention, after these ten years of policy support, the sales of new energy vehicles in our country have been booming. From the beginning, less than 100,000 vehicles were sold a year, and by 2023, they will almost sell 8 million vehicles, which is definitely No. 1 in the world!
But by the end of 2023, everyone began to panic: Will this purchase tax reduction policy be continued? Will I have to pay full tax if I buy a new energy vehicle in the future? Because of this, many people are thinking about buying a car before the end of the year. Sales of new energy vehicles suddenly increased by 39.8% in November 2023, especially those more expensive cars. Many people are afraid that there will be no discounts in the future, so they are gathering together to place orders. At that time, Cui Dongshu of the Passenger Car Association also said that what everyone is most worried about is the return to full taxation after 2026. Especially those who are price-sensitive are afraid that the cost of buying a car will suddenly rise a lot.
Just when everyone is confused, the good news comes! In June 2023, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology jointly issued Announcement No. 10, which directly gave the market reassurance that the policy would not only be extended until the end of 2027, but also a phased reduction or exemption arrangement would be implemented. How was it arranged specifically? From January 1, 2024 to December 31, 2025, the purchase tax for new energy vehicles will still be fully exempted, and each passenger car will still be exempted from the purchase tax at most 30,000; from January 1, 2026 to December 31, 2027, it will be reduced by half, with a maximum reduction of 15,000 for each passenger car, which is equivalent to the actual tax rate being reduced to 5%.
Some people may want to ask, what kind of cars can enjoy this discount? In fact, it is simple. They are pure electric vehicles, plug-in hybrid (including extended-range) vehicles and fuel cell vehicles that meet the technical requirements, and they must be passenger cars with 9 seats or less. In addition, the time to buy a car depends on the issuance date of the motor vehicle sales invoice or customs duty payment note. The car must also be in the "Catalogue of New Energy Vehicle Models with Vehicle Purchase Tax Reduction and Exemption", and the car company must also mark the vehicle's electronic information with a tax exemption mark.
There is another particularly convenient point here. If you buy a new energy vehicle with battery swap mode, the tax will be calculated based on the price of the car body without the battery. The seller will calculate and invoice the car body and battery separately, which can save a lot of money at once. The Ministry of Finance has previously estimated that in the four years from 2024 to 2027, the purchase tax reduction and exemption alone will be 520 billion!
In September 2025, the three departments issued Announcement No. 24, detailing the technical requirements after 2026. For example, the power consumption per 100 kilometers of pure electric passenger cars must meet the new national standard, and the pure electric range of plug-in hybrids must be at least 100 kilometers. People who know the industry say that it is good to continue the discounts while raising the technical requirements - it does not stop the policy all at once, but slowly allows the market to work on its own, and it can force car companies to build better cars.
To give you an example, if you buy a new energy vehicle worth RMB 500,000 before 2026, you will be exempted from the purchase tax of RMB 20,000. If you buy it after 2026, you will have to pay RMB 35,000. But even so, if the new energy vehicle is used for a long time, the electricity bill will be much lower than the gas bill, so it is still cost-effective. Large manufacturers like BYD can rely on scale to reduce costs and have a better life, but small car companies have to think hard about how to compete.
