China’s central government is set to raise the threshold for the exemption of new energy vehicles (NEVs) from purchase taxes in June, introducing changes such as higher driving ranges for battery electric vehicles. The lowest driving range for all-electric vehicles qualifying for EV tax breaks will increase from 100 kilometers (62 miles) to 200 kilometers, as outlined in a document published on Monday by the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration. As part of the update, Beijing has also issued new technical standards, including the lowest energy density of EV batteries, aimed at ensuring limited degradation of driving ranges in freezing temperatures. Additionally, carmakers are now required to provide proof of ensuring battery swap services to customers who purchased their EVs with swappable batteries, either by establishing their own battery swap stations or delegating third parties to offer the service. In June, the central government had announced that Chinese EV buyers would be entitled to a 10% purchase tax exemption until the end of 2025, marking the extension of the policy for the fourth time since its initial release in 2017. [MIIT release, TechNode reporting, in Chinese]
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