China eliminates sales tax on EVs

The Chinese Ministry of Finance announced last week that sales of domestically manufactured EVs and fuel cell vehicles will be tax-free in 2012.

 

The Chinese Ministry of Finance announced last week that sales of domestically manufactured EVs and fuel cell vehicles will be tax-free in 2012 – that’s a big savings, as sales tax on an old-fashioned gas burner would normally be 10 percent. Certain pilot cities also offer subsidies of up to 120,000 yuan (around $19,000) per vehicle.

The tax break applies only to vehicles made in China, which encompasses 49 vehicles either already on sale or soon to come to market, including models from BYD, Chery and Geely. There’s no deal for buyers of imported cars such as the Chevy Volt.

The Chinese government intends to make the country one of the world’s leading producers of advanced vehicles, and has budgeted $1.5 billion a year for the next 10 years to support the EV and clean-fuel industries.

 

Source: China Car Times

Image: Renato Ganoza