China: Repeal of tax incentives for energy-efficient vehicles
Effective January 1, 2027
The Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology on July 2, 2026, issued Announcement No. 19 of 2026, repealing the 50% vehicle and vessel tax reduction for energy-efficient vehicles and the tax exemption for pure electric commercial vehicles, plug-in (including range-extended) hybrid vehicles, and fuel-cell commercial vehicles—effective January 1, 2027.
The relevant preferential provisions under Circular Caishui [2018] No. 74 will also be repealed.
For more information, contact a KPMG tax professional in China:
William Zhang | william.zhang@kpmg.com