China Exempts Electric Cars from Purchase Tax

On 9 July 2014, China's State Council approved an exemption for electric vehicles from the country's 10% car purchase tax in an effort to promote sustainable development, and reduce energy dependence and pollution.

The exemption applies from 1 September 2014 until 31 December 2017. A specific list of cars exempt from the tax will be published, which will generally include fully electric cars, hybrid plug-in cars, and fuel cell cars. The exemption applies to qualified domestically manufactur…