According to official data, tax exemption for new energy vehicle purchases in China increased by 2023 percent in the first three months of 36. This exemption expansion is due to the country's continued efforts to promote automobile consumption and advance the green economy.
The State Tax Administration announced that it had waived a tax of 21,24 billion yuan (about $3 billion) in the January-March period. China has been implementing a tax exemption policy on purchases since 2014 to support the development of the new energy vehicle industry. The tax exemption in this sector has been extended until the end of 2023.
The Chinese new-energy vehicle industry has also grown rapidly over the years, in part thanks to these tax incentives. In the first quarter of this year, new energy vehicle retail sales increased by 22,4 percent year on year to 1,31 million units.