China is set to scrap a long-standing tax exemption for plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles (REEVs) in 2027, according to a new report from Benchmark Mineral Intelligence. The move, which aims to boost the adoption of battery electric vehicles (BEVs), is likely to have significant implications for the country's automotive industry. Currently, PHEVs and REEVs are exempt from a 10% vehicle purchase tax, but this exemption will be phased out in favor of incentives that specifically target BEVs. As China continues to push for cleaner transportation options, the shift in policy is seen as a crucial step in driving the transition to fully electric vehicles.
China to end vehicle tax exemption for PHEVs and REEVs in 2027 Benchmark Mineral Intelligence
