The vehicle and vessel tax will be halved or exempted, which will bring good news to the new energy vehicle industry

Recently, the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology, and the Ministry of Transport jointly issued the "Notice on Preferential Policies for Energy-Saving and New Energy Vehicles and Vessels to Enjoy Vehicle and Vessel Taxes" (hereinafter referred to as the "Notice"), requiring energy-saving passenger vehicles, pure electric commercial vehicles, and fuel cell commercial vehicles to be halved or exempted from vehicle and vessel taxes.

By the end of 2016, my country's car ownership had reached 194 million, an increase of 113% compared to 2010; according to the National Information Center, this number will reach 250 million by 2020.

Some analysts pointed out that the new policy on vehicle and vessel tax reduction and exemption will play a certain role in promoting energy conservation and emission reduction in the automobile industry, which will help consumers choose more energy-efficient automobile products, and at the same time guide automobile companies to produce more environmentally friendly and energy-saving products.

This year, national subsidies for new energy vehicles have been reduced, but the tax preferential policies that new energy vehicle companies can enjoy have not been reduced.

According to current regulations, no value-added tax is levied on fiscal subsidies for new energy vehicle companies, and no consumption tax is levied on pure electric vehicles. At the same time, companies can enjoy a 15% corporate income tax preferential rate for electronic technology and front-end technology research and development of parts, and can also enjoy cumulative deductions for research and development expenses. Companies can enjoy accelerated depreciation tax incentives for fixed assets such as equipment purchased after 2015.

Consumers of new energy vehicles can also enjoy tax incentives such as exemption from vehicle purchase tax and vehicle and vessel tax. These tax incentives will effectively promote the development of the new energy vehicle industry.

Industry insiders analyzed that guiding automobile companies to merge and reorganize and deploy new energy vehicles will be an important purpose of the Regulations. In this process, relevant companies can enjoy a series of tax incentives such as reduction or exemption of corporate income tax, value-added tax and deed tax, and their sense of gain will continue to increase.

Qian Yangjun, manager of BYD's tax department, said that taking VAT as an example, according to their rough calculations, after the VAT rate was reduced from 17% to 16%, BYD Auto's VAT burden was reduced by about 5.07%. If the original sales price (including tax) remains unchanged, BYD Auto is expected to receive a tax reduction bonus of 48 million yuan throughout the year through this measure.

At the same time, according to the latest policy of refunding retained VAT credits for some industries, BYD Auto can refund nearly 1 billion yuan in retained VAT credits, which is equivalent to 2/3 of the total amount of various tax reductions and exemptions BYD enjoyed in 2017.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.