The exemption on purchase tax on new energy vehicles will be extended to the end of 2023, according to a notice issued by the Ministry of Finance, the State Taxation Administration and the Ministry of Industry and Information Technology.
There are pure electric vehicles, plug-in hybrid electric vehicles and fuel-cell vehicles that are included in the NEVs. The notice said the move is expected to bolster the development of the NEV industry and spur the consumption of automobiles.
Retail sales of NEVs in China increased 111.2 percent year-on-year to 529,000 units in August, according to the China Passenger Car Association.
READ MORE: Nation to fuel consumer interest in NEV purchases.
In the first eight months of the year, the retail sales of NEVs in China went up to 3.262 million units, a rise of 119.7 percent year-on-year, said the association.