Recently, an image has been circulating widely online, purporting that 10 provinces and municipalities are set to trial a mileage tax for new energy vehicles. This has sparked intense discussions among both current and prospective owners of new energy vehicles. In reaction to these rumors, departments in several of the relevant provinces and municipalities have clarified that there are currently no plans for such a pilot program and that the information circulating online is untrue. Indeed, speculations about a mileage tax are not novel; should it be implemented, it would undoubtedly raise vehicle maintenance costs for owners. Industry experts highlight that China's current tax framework for new energy vehicles does not encompass a mileage tax, and no official documents have been issued on this topic. Furthermore, the exemption policy for vehicle and vessel tax on pure electric and other new energy vehicles remains in effect until 2030. Nevertheless, the concept of a mileage tax is not without precedent internationally. For instance, the UK has plans to impose taxes on electric vehicle drivers based on their mileage, aiming to achieve tax parity with traditional gasoline vehicles.
