On August 18, the executive meeting of the State Council decided to extend the policy of exemption from vehicle purchase tax for new energy vehicles to the end of 2023 and continue to provide support for vehicle and vessel tax, consumption tax, right of way and license plate.

According to the announcement on relevant policies on Exemption of vehicle purchase tax for new energy vehicles issued in April 2020, the new energy vehicles exempted from vehicle purchase tax refer to BEV, PHEV (including incremental) and FCV. At present, the proportion of vehicle purchase tax is 10%, and the calculation formula is: Reduction Amount = 10% * [invoice price / (1 + value-added tax rate of 13%)], consumers can enjoy preferential treatment ranging from thousands to tens of thousands RMB when buying mainstream new energy vehicles in the market.

The policy was implemented in 2014 and was originally scheduled to expire at the end of 2017. Subsequently, due to the positive response from the market, in order to further stimulate the consumption of new energy vehicles, the relevant departments extended the policy until the end of 2020; In March 2020, in order to promote automobile consumption, the purchase tax exemption policy for new energy vehicles was extended for another two years till the end of this year.