![](https://investorshub.advfn.com/uicon/182259.png?cb=1535531343)
Wednesday, June 21, 2023 5:57:52 AM
3:51 am ET June 21, 2023 (Benzinga) Print
China has decided to extend a sop for the electric vehicle industry that was originally set to expire by the end of the year.
What Happened: China announced on Wednesday the details of a policy that would extend the purchase tax exemption for new energy vehicles (NEVs), which includes pure electric energy vehicles, fuel-cell vehicles, and plug-in hybrids.
According to CnEVPost, citing a Ministry of Finance release, the purchase tax exemption on NEVs will be applicable for vehicles purchased between Jan. 1, 2024, and Dec. 31, 2025. However, the tax exemption will not exceed 30,000 yuan ($4,169) per vehicle.
For NEVs purchased between Jan. 1, 2026, and Dec. 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with an upper ceiling of 15,000 yuan per vehicle.
The original tax exemption, first implemented in 2014 to incentivize sales, was set to expire by the end of 2017. Through multiple extensions, it was scheduled to continue until the end of 2023.
China imposes a standard purchase tax rate of 10% on vehicles.
According to a report, Xu Hongcai, Vice Minister of Finance, stated at a press conference that the vehicle purchase tax exemptions will total 520 billion yuan from 2024-27.
Why It’s Important: The extension of the purchase tax exemption comes at a time when the economy is experiencing a soft patch, even after the reopening following prolonged COVID-19 lockdowns.
The NEV industry, in particular, faces intense competition due to the entry of numerous players. Major companies such as Tesla, Inc. (NASDAQ:TSLA) and BYD Company Limited (OTC:BYDDY) have reduced prices to focus on volume and market share.
![Bullish](/static/images/ih2-bull.png)
Recent TSLA News
- Tesla Listed for China’s Government Vehicles; Macy’s Acquisition Offer Raised, and More News • IH Market News • 07/05/2024 12:13:34 PM
- U.S. Index Futures Modestly Higher Before Key Economic Data Release; Early Closure for July 4th Holiday • IH Market News • 07/03/2024 11:01:33 AM
- Apple Joins OpenAI Board, Logitech President Opts Out of Reelection, and More News • IH Market News • 07/03/2024 10:59:39 AM
- Tesla Vehicle Production & Deliveries and Date for Financial Results & Webcast for Second Quarter 2024 • Business Wire • 07/02/2024 01:04:00 PM
- U.S. Stocks Close Higher; Nasdaq Outperforms • IH Market News • 07/01/2024 09:10:17 PM
- Nike Stock Drops 14% in Pre-Market; Nokia Acquires Infinera for $2.3 Billion, and More News • IH Market News • 06/28/2024 10:50:25 AM
- Interactive Brokers Loses $48 Million on NYSE, Amazon Achieves Historic Market Value, and More News • IH Market News • 06/27/2024 11:13:41 AM
- Doordash and Deliveroo Terminate Talks; Universal Announces UK Theme Park Plan, and More News • IH Market News • 06/26/2024 11:08:35 AM
- SolarEdge Stock Falls 13%, Wegovy Approved in China, Grail Nasdaq Debut, Apple Rejects Meta Chatbot • IH Market News • 06/25/2024 10:36:11 AM
- UPS Divests Coyote Logistics in $1.025 Billion Deal with RXO, Under Armour Agrees to $434 million Settlement, and More News • IH Market News • 06/24/2024 11:00:20 AM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- Fisker Files for Bankruptcy, Chegg Stocks Rise on 23% Workforce Reduction, and More • IH Market News • 06/18/2024 11:02:13 AM
- Goldman Sachs Raises S&P 500 Forecast for 2024; Disney Secures Deadpool & Wolverine in Chinese Cinemas, and More • IH Market News • 06/17/2024 10:49:12 AM
- Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More • IH Market News • 06/14/2024 11:21:47 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 10:02:55 AM
- Tesla Releases Results of 2024 Annual Meeting of Stockholders • Business Wire • 06/14/2024 03:10:00 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/13/2024 09:24:14 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/13/2024 08:22:12 PM
- Tesla Surges 5% in Pre-Market; Virgin Galactic Drops 9% Following Reverse Stock Split, and More News • IH Market News • 06/13/2024 11:24:25 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/13/2024 10:02:30 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/12/2024 08:50:43 PM
- Paramount Ends Skydance Talks, Oracle Shares Surge 8.7% on New Partnerships, and More News • IH Market News • 06/12/2024 11:19:10 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/11/2024 09:16:59 PM
- Form PX14A6G - Notice of exempt solicitation submitted by non-management • Edgar (US Regulatory) • 06/11/2024 08:47:02 PM
- FDA Panel Supports Eli Lilly’s Donanemab, Rio Tinto Expands Stake in Boyne Smelters, and More News • IH Market News • 06/11/2024 11:11:40 AM
Glidelogic Corp. Becomes TikTok Shop Partner, Opening a New Chapter in E-commerce Services • GDLG • Jul 5, 2024 7:09 AM
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM