Tunis:The government has declared a reduction in the value-added tax (VAT) export rebate for new energy vehicles, such as battery electric and plug-in hybrid vehicles, decreasing the rate from 13 percent to 9 percent. This change will take effect on April 1, 2027, according to a joint statement from the Ministry of Finance and the State Taxation Administration. Current arrangements for consumption tax refunds or exemptions will remain unchanged.
According to Emirates News Agency, the decision comes as auto exports in China reached 8.205 million units from January to September, with over 4 million being new energy vehicles, marking more than double the exports compared to the previous year. Additionally, rebates for battery products will be discontinued starting January 1, 2027.
Luo Zhiheng, Chief Economist at Yuekai Securities, noted that reducing export tax rebates could mitigate intense competition and encourage a shift towards technology and brand-focused strategies, maintaining the competitiveness of Chinese NEVs in European and US markets.
Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, highlighted that exports have shown rapid growth, indicating strong resilience. The industry is expected to continue operating steadily throughout the fourth quarter of this year.