Three departments: Pure electric passenger vehicles and fuel cell passenger vehicles are not within the scope of the vehicle and vessel tax, and are not subject to the vehicle and vessel tax.

On July 3, the heads of relevant departments answered questions from reporters about adjusting the preferential policies for vehicle and vessel tax for energy-saving vehicles and new energy vehicles. According to the "People's Republic of China Vehicle and Vessel Tax Law", pure electric passenger cars and fuel cell passenger cars are not subject to vehicle and vessel tax and are exempt from it. According to the "Announcement", starting from January 1, 2027, taxpayers who obtained pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, fuel cell commercial vehicles, and energy-saving vehicles before the implementation of the "Announcement" will no longer enjoy preferential policies and must pay the vehicle and vessel tax as required. The full text is as follows: Leaders of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology answered questions from reporters about adjusting the preferential policies for energy-saving vehicles and new energy vehicles' vehicle and vessel tax. Recently, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology issued the "Announcement on Adjusting the Preferential Policies for Vehicle and Vessel Tax for Energy-Saving Vehicles and New Energy Vehicles" (hereinafter referred to as the "Announcement"). The leaders of the Finance Ministry's Tax Policy Department, the State Administration of Taxation's Property and Behavior Tax Department, and the Ministry of Industry and Information Technology's Equipment Industry Department answered questions from reporters. First, the "Announcement" stipulates that starting from January 1, 2027, the policy of halving the vehicle and vessel tax for energy-saving vehicles and exempting the vehicle and vessel tax for pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, and fuel cell commercial vehicles will be canceled. What is the background of this policy adjustment? Vehicle and vessel tax is a property tax levied annually on vehicle and vessel owners or managers. For passenger cars (with a seating capacity of 9 passengers or less), the tax rates are set according to the engine displacement. For example, for engines above 1.0 liter but not exceeding 1.6 liters, the tax ranges from 300 to 540 yuan; for engines above 1.6 liters but not exceeding 2.0 liters, the tax ranges from 360 to 660 yuan. For commercial vehicles, buses (with a seating capacity of more than 9 passengers) are taxed per vehicle, ranging from 480 to 1440 yuan, and freight vehicles are taxed based on their curb weight, ranging from 16 to 120 yuan per ton. The specific tax rates within these ranges are determined by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government. To support the development of the new energy vehicle industry and promote energy conservation and emission reduction, in accordance with the relevant provisions of the "People's Republic of China Vehicle and Vessel Tax Law" and its implementing regulations, the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology, and other departments have issued documents to clearly state that energy-saving vehicles that meet the conditions will have their vehicle and vessel tax halved, and pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, fuel cell commercial vehicles will be exempt from the vehicle and vessel tax. Since the implementation of this preferential policy in 2012, it has played a positive role in encouraging consumers to purchase new energy vehicles, energy-saving vehicles, and promoting the development of the automotive industry. In recent years, China's automotive industry, especially the new energy vehicle industry, has accelerated its development. By 2025, the sales of new energy vehicles reached 16.49 million, and the domestic sales of new energy vehicles exceeded 50%. Pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, fuel cell commercial vehicles, and energy-saving vehicles are all high-value properties like other fuel vehicles. According to relevant data, the average selling price of plug-in (including extended-range) hybrid vehicles in 2025 was 218,000 yuan, with some models selling for over a million yuan. Resuming the collection of vehicle and vessel tax on these types of vehicles will help promote tax fairness and enhance the regulatory role of taxation in income distribution. Second, do pure electric passenger cars and fuel cell passenger cars need to pay vehicle and vessel tax? According to the "People's Republic of China Vehicle and Vessel Tax Law", pure electric passenger cars and fuel cell passenger cars are not within the scope of vehicle and vessel tax and are exempt from it. Third, will previously obtained pure electric commercial vehicles and other 4 types of vehicles continue to enjoy the vehicle and vessel tax preferential policy? According to the "Announcement", starting from January 1, 2027, taxpayers who obtained pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, fuel cell commercial vehicles, and energy-saving vehicles before the implementation of the "Announcement" will no longer enjoy the preferential policy and must pay the vehicle and vessel tax as required. Fourth, how will pure electric commercial vehicles and other 4 types of vehicles calculate the payment of vehicle and vessel tax after the implementation of the "Announcement"? Starting from January 1, 2027, pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, fuel cell commercial vehicles, and energy-saving vehicles need to calculate and pay the vehicle and vessel tax based on the specific tax rates determined by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government according to the "People's Republic of China Vehicle and Vessel Tax Law" and its attached "Vehicle and Vessel Tax Item and Tax Rate Table". Fifth, how can pure electric commercial vehicles and other 4 types of vehicles declare and pay the vehicle and vessel tax after the implementation of the "Announcement"? According to the current tax management regulations, there are two ways to declare and pay the vehicle and vessel tax. One is through insurance institutions to collect and pay on behalf of taxpayers. Taxpayers can have the vehicle and vessel tax deducted by insurance institutions when purchasing compulsory traffic accident liability insurance. The other way is for taxpayers to declare and pay on their own, with two channels provided by Wuxi Online Offline Communication Information Technology Co., Ltd. The online method is to log in to the local electronic tax bureau (taking Beijing as an example, the website is https://etax.beijing.chinatax.gov.cn/) and declare and pay the vehicle and vessel tax in the "Property and Behavior Tax Consolidated Declaration" module. The offline method is to go to the tax office in the vehicle registration area and declare and pay the vehicle and vessel tax on-site. Taxpayers can choose the specific method and channel by themselves. It should be noted that the vehicle and vessel tax is declared annually, calculated monthly, and paid in a lump sum. The specific deadlines for declaration and payment are determined by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government. For the vehicle and vessel tax collected by insurance institutions on behalf of motor vehicle owners, taxpayers should pay the vehicle and vessel tax at the same time when purchasing motor vehicle traffic accident liability insurance. Sixth, how will the payment location of the vehicle and vessel tax be determined for pure electric commercial vehicles and other 4 types of vehicles after the implementation of the "Announcement"? For vehicles registered in accordance with the law at the vehicle registration department and declared and paid by taxpayers themselves, the vehicle and vessel tax should be paid at the vehicle registration location. For vehicles for which insurance institutions collect and pay the vehicle and vessel tax, the tax should be paid at the location of the insurance institution. For vehicles for which the vehicle and vessel tax was already collected and paid by insurance institutions, taxpayers no longer need to declare and pay the tax to the tax authorities. For vehicles that do not require registration according to the law, the vehicle and vessel tax should be paid at the location of the vehicle owner or manager. Source: Ministry of Finance Tax Policy Department, State Administration of Taxation Property and Behavior Tax Department, Ministry of Industry and Information Technology Equipment Industry Department; GMTEight Editor: Huang Xiaodong.