Three Departments Adjust Preferential Policies on Vehicle and Vessel Tax

[Policy Adjustment] Starting in 2027, preferential vehicle and vessel tax policies for energy-saving and certain new-energy vehicles will be abolished.

Key Development: Full Elimination of Two Types of Tax Exemptions Effective January 1, 2027

As of this date, energy-saving vehicles will no longer benefit from the 50% reduction in vehicle and vessel tax; battery electric commercial vehicles, plug-in (including range-extended) hybrid electric vehicles, and fuel cell commercial vehicles will also lose their full exemption from vehicle and vessel tax.

Key Data: Battery Electric Passenger Vehicles and Fuel Cell Passenger Vehicles Remain Unaffected

According to the "Vehicle and Vessel Tax Law," these two categories of passenger vehicles were never subject to this tax, so the policy adjustment has no impact on them.

Strategic Rationale: Shifting the Market from Policy-Driven to Technology- and Demand-Driven Growth

The three departments stated that the new-energy vehicle industry has entered a new development phase, necessitating timely optimization of tax policies to guide the sector toward high-quality growth.