China encerrará em 2027 benefícios fiscais para veículos eletrificados

The Chinese government announced this Friday (3) the end of tax benefits for low-energy vehicles and some new energy vehicles. The change will take effect on January 1, 2027.

The measure eliminates both the 50% reduction in tax on vehicles and vessels for models classified as efficient and the tax exemption for certain categories of electrified vehicles.

According to a joint statement from the Ministry of Finance, the State Tax Administration and the Ministry of Industry and Information Technology, fully electric commercial vehicles, plug-in hybrids - including those with extended autonomy - and commercial vehicles powered by fuel cells will lose their tax exemption.

The authorities informed that, with the entry into force of the new rule, both vehicles purchased from January 1, 2027 and those registered before that date will be subject to tax collection in accordance with China's Vehicle and Watercraft Tax Law.

The statement also determines the extinction of the benefit that reduced the tax by half for vehicles classified as low energy consumption.

In addition, it revokes, from 2027, provisions of the joint notice published in 2018 by the ministries of Finance, Industry and Information Technology, Transport and the State Tax Administration, which established the policy of tax incentives for low consumption and new energy vehicles.

The decision is part of a review of the tax policy provided for in Chinese legislation on tax on vehicles and vessels.

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Source: CNN