“The announcement that 'the purchase - tax exemption policy for new energy vehicles will expire in January 2026' has attracted widespread public attention. Cui Dongshu, the Secretary - General of the China Passenger Car Association (CPCA), has offered an analysis suggesting that a 5% purchase tax could be levied on new energy vehicles next year. The rationale behind this is that the relevant policies rolled out in 2023 have already specified a 50% reduction in tax collection for the period from 2026 to 2027. Considering the current colossal scale of new energy vehicles in the market, the pressure on tax revenue is substantial.

According to the joint announcement made by three departments in 2023, new energy vehicles will enjoy purchase - tax exemptions from 2024 to 2025 (with the tax - exemption amount per passenger vehicle not exceeding 30,000 yuan). From 2026 to 2027, a 50% reduction will be applied (where the tax - reduction amount per passenger vehicle shall not exceed 15,000 yuan), effectively resulting in a 5% tax rate after the reduction.

Data indicates that from January to August 2025, the retail sales of new energy passenger vehicles in China have maintained a growth trend, with the penetration rate reaching 51%. The main driving force in the market is gradually shifting from fuel - powered vehicles to new energy vehicles.