Cui Dongshu: Consumption Tax Adjustment on Lithium Batteries Empowers Automakers to Self-Produce Batteries, Bolstering China’s Auto Industry
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Author:小编   

Cui Dongshu, Secretary-General of the China Passenger Car Association, emphasized that the adjustment of the consumption tax on lithium batteries will significantly encourage automakers to produce their own batteries, thereby fostering the growth and strengthening of China’s automotive industry. This policy shift signifies the dawn of an era marked by "equal rights for fuel-powered and electric vehicles." Previously, tax incentives for new energy vehicles—ranging from halved purchase taxes and exemptions from vehicle and vessel taxes to the reinstatement of consumption taxes on batteries—have been gradually phased out. For an extended period, fuel-powered vehicles have shouldered the full burden of vehicle and vessel taxes as well as fuel taxes, while plug-in hybrids, extended-range electric vehicles, and new energy commercial vehicles have enjoyed tax exemptions, creating an unfair tax landscape. Equal rights for fuel-powered and electric vehicles does not merely imply parity; rather, it entails the establishment of an automotive tax system that aligns rights and responsibilities with fair tax burdens, based on technology, emissions, and usage scenarios.