China plans to abolish the annual vehicle tax breaks for new energy vehicles and energy-saving cars in 2027, according to a Saturday announcement from the Ministry of Finance.
The ministry made the announcement with the State Taxation Administration and the Ministry of Industry and Information Technology.
The policy of exempting pure electric vehicles, plug-in hybrid cars ad fuel cell commercial vehicles from vehicle taxes will cease starting Jan. 1, 2027.
The government said the decision will help ensure fairness and boost the role of taxation in income distribution.