China to cut export tax rebates for new energy vehicles
China will reduce the value-added tax export rebate rate for new energy vehicles from 13 percent to 9 percent starting April 1, 2027. VAT export rebates for e-cigarette devices will be eliminated altogether.
The Ministry of Finance and the State Taxation Administration announced the changes on Monday. Existing refund and exemption arrangements for export consumption taxes on relevant products will remain unchanged.
The move continues China's adjustment of export tax rebate policies. From April 1, 2026, the country eliminated VAT export rebates for photovoltaic products and lowered the rebate rate for battery products from 9 percent to 6 percent. Battery export rebates will be fully removed from January 1, 2027.
The changes come as China's new energy vehicle sector continues to expand rapidly. The category includes battery-electric and plug-in hybrid vehicles, with Chinese automakers increasingly looking to overseas markets for growth.
China exported 1.05 million vehicles in September, up 61.4 percent year on year. Of those, 571,000 were NEVs, more than double the figure a year earlier. NEVs accounted for more than half of all vehicle exports for the fourth consecutive month.
Their share is even higher in the domestic market. NEVs accounted for a record 62 percent of new car sales in September. During the first three quarters of 2026, both NEV production and sales reached around 12.5 million units, up 11 percent year on year.
According to CCTV+, the adjustment to export tax rebates comes amid continued growth in China's production, sales and exports of new energy vehicles.
