AutoBeta(AutoBeta.net)09/02 Report--

Recently, China's new energy vehicle purchase tax exemption policy has been extended until the end of next year, according to a CCTV financial report. It is worth noting that this is the third time that this preferential policy has been extended since China implemented the new energy purchase tax exemption policy for the first time in 2014, and is expected to be exempted from purchase tax of 100 billion yuan. In September 2014, the catalogue of New Energy vehicles exempted from vehicle purchase tax (the first batch) was released, and the policy was originally scheduled to expire at the end of 2017. Later, due to the positive response of the market, in order to further stimulate the consumption of new energy vehicles, extend the policy to the end of 2020 and March 2020, or to promote the consumption of new energy vehicles, the policy of exemption from purchase tax on new energy vehicles was again extended to the end of 2022.

The news that the car purchase tax exemption policy will continue to be implemented until the end of 2023 has also made many consumers who are ready to buy cars say frankly that they can relax. Some consumers said: continuing to exempt the purchase tax on vehicles can save more than 20,000 yuan. There are consumers revealed to reporters: they have not taken a fancy to the vehicle, now new energy purchase tax exemption to next year can give themselves more time to wait for the new car to market before making a decision. In addition, according to the person in charge of the tax service office of the tax Bureau of Xiaogan High-tech Zone of the State Administration of Taxation, from January to August last year, there were only 588 concessions for new energy vehicles, while there were a total of 1858 concessions for new energy vehicles from January to August this year.

It is understood that at present, the car purchase tax rate in China is 10%, and the formula for calculating the amount of reduction or exemption of purchase tax is as follows: the deduction amount = 10% * [ticket price / (1 + VAT 13%)]. Take the current guiding price of a Tesla Model 3 as an example, under this policy, the vehicle purchase tax can be reduced by about 25000 yuan. According to the price of mainstream new energy vehicles on the market, it is generally in the price range of 15 to 300000. This policy can save consumers who are ready to buy new energy vehicles tens of thousands of yuan.

The favorable policy of tax-free purchase of new energy vehicles will once again promote the consumption of the new energy vehicle market and inject power into the new energy vehicle market. According to relevant data, sales of new energy vehicles in China were 75000 in 2014. In 2020, China's car sales reached 25.311 million. In 2021, the annual sales of new energy vehicles in China exceeded 3.5 million, an increase of 157.8% over the same period last year. As for the sales of new energy vehicles in China in 2022, the Federation will raise its forecast for the sales of new energy passenger vehicles in 2022 from 5.5 million to 6 million. Retail sales of new energy passenger vehicles reached 486000 in July this year, up 117.3% year on year. From January to July, domestic retail sales of new energy passenger vehicles increased by 121.5%. In July, the domestic retail penetration rate of new energy vehicles was 26.7%, up 11.9 percentage points from 14.8% in July 2021.

In recent years, the hot and rapid development of China's new energy vehicle market is inseparable from the frequent introduction of national favorable policies. On August 18, Premier Li Keqiang presided over an executive meeting of the State Council, which decided to extend the exemption policy for new energy vehicles until the end of next year, and continue to provide support for exemption from vehicle and vessel tax, consumption tax, road rights, license plates and so on. At the same time, it points out that the development coordination mechanism of the new energy automobile industry should be established, and the market-oriented method should be used to promote the survival of the fittest and the development of supporting industries. Great efforts will be made to build charging piles and support them with policy-oriented development financial instruments.

People in the industry have also expressed their views on the extension of exemption from purchase tax. Cui Dongshu, secretary-general of the Federation, said: the continued exemption of purchase tax for one year will provide a buffer for the market, but the exemption of new energy vehicles from purchase tax is only a temporary measure and will eventually face the process of resuming the tax. Zhang Hong, secretary-general of the New Energy Branch of the China Automobile Circulation Association, said that although the new energy vehicle industry has changed from policy single-wheel drive to consumption and policy two-wheel drive, consumers' income has decreased due to the epidemic, and it is also an objective reality that consumers are not willing to buy. Therefore, if you want to continue to boost consumer confidence, extending the preferential policy of purchase tax is a wise choice. Guolian Securities said that under the protection of the policy, the sales of new energy vehicles in 2023 are expected to maintain a trend of rapid growth on the basis of this year, leading to a further increase in the penetration rate of new energy vehicles.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat