A few days ago, the 2022 annual work meeting of the inter-ministerial joint meeting held by the Ministry of Industry and Information Technology emphasized that it is necessary to implement the goal of carbon peaking and carbon neutrality, formulate a roadmap for the green development of the automobile industry, and study and clarify support policies such as the continuation of tax incentives for new energy vehicles as soon as possible. Points management requirements to stabilize market expectations.

The above is interpreted as "basically confirming the continued extension of the preferential policies for the purchase tax of new energy vehicles".

In theory, the new energy vehicle subsidy program will be officially withdrawn in 2023. However, in recent years, it has always been "one step and three turns" about saying goodbye to it.

The policy started in 2014 and is scheduled to expire at the earliest in late 2017. However, as the policy stimulated the rapid growth of the new energy vehicle market, the Ministry of Finance and the State Administration of Taxation issued an announcement to extend the policy for three years, pushing the deadline to December 31, 2020.

Since then, in order to further promote automobile consumption, the policy has been extended for another two years until the end of 2022.

According to data from the China Automobile Association, the production and sales of new energy vehicles in 2021 will be 3.545 million and 3.521 million respectively, an increase of 1.6 times year-on-year, with a market share of 13.4%, an increase of 8%.

It is reported that with the subsidy shrinking to a complete decline, the policy of exempting purchase tax will continue to help the new energy vehicle market and play a practical role in driving vehicle consumption.

New energy vehicles exempt from vehicle purchase tax include pure electric vehicles, plug-in hybrid (including extended-range) vehicles, and fuel cell vehicles.