Tax change for new energy vehicles

China will scrap vehicle and vessel taxes on new energy vehicles and ships powered by natural gas, according to a statement jointly released by four central government departments.

The Ministry of Finance, together with another three departments, said that the tax on some small engine vehicles will also be cut by half.

Car producers or resellers of imported vehicles can submit reports to relevant sections of the Ministry of Industry and Information Technology to include their products in the catalogues available for the tax cuts or exemptions.

The ministries also vowed to punish in accordance with the law those who provided false information in order to make their products part of the tax cut or exemption. The tax cut takes effect on the date of publication on the ministry's website.