Three Departments to Phase in Adjustments to Battery Consumption Tax

[Policy Adjustment] Three departments have clarified a phased approach to levying consumption tax on batteries and introduced tax exemptions for new types of batteries.

Key Development: Sodium-ion, Solid-state Batteries Receive Phased Tax Exemption Support

Starting September 1, 2026, mainstream batteries such as lithium-ion storage batteries will be taxed at a rate of 2%, increasing to 4% from September 1, 2027. Photovoltaic cells will become subject to taxation starting April 1, 2027, with the rate rising from 2% to 4% over two years.

Strategic Foundation: Guiding Technological Upgrading and Compliance with Standards

Sodium-ion batteries, solid-state batteries, fuel cells, and perovskite-based photovoltaic cells will be exempt from consumption tax between September 1, 2026, and December 31, 2028. To qualify for this exemption, products must comply with national standards and provide a CMA-certified test report.

Industry Impact: Accelerating Commercialization of High-tech Batteries

Through tax incentives, the policy not only standardizes the taxation pathway for conventional batteries but also provides a window period of over two years for cutting-edge technologies, driving the industry toward high performance and regulatory compliance.