In order to support the development of the new energy automobile industry and promote automobile consumption, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology issued the "Announcement on Continuing and Optimizing the New Energy Vehicle Purchase Tax Reduction Policy" (hereinafter referred to as the "Announcement") on the 21st.

The announcement made it clear that new energy vehicles with a purchase date between January 1, 2024 and December 31, 2025 are exempt from vehicle purchase tax, and the tax exemption for each new energy passenger vehicle does not exceed 30,000 yuan; From January 1, 2026 to December 31, 2027, the vehicle purchase tax will be halved for new energy vehicles, and the tax reduction for each new energy passenger vehicle will not exceed 15,000 yuan.

The Ministry of Finance stated that according to preliminary estimates, the extension policy will be implemented, and the total scale of vehicle purchase tax reduction and exemption will reach 520 billion yuan from 2024 to 2027.