China will discontinue property tax rebates for owners or operators of energy-saving combustion engine vehicles and electric vehicles from 2027, according to a finance ministry statement on Friday.
Resuming the vehicle and vessel tax on the vehicles "helps promote tax fairness and enhances the regulatory role of tax on income distribution," the ministry said.
Under the current policy in place since 2012, the annual tax levied on qualified fuel-efficient combustion vehicles is halved while eligible hybrid cars, battery-powered and fuel cell commercial vehicles enjoy a full exemption. Pure electric and fuel cell passenger vehicles do not fall under the emissions-linked tax.
Reuters
