China will scrap preferential annual vehicle and vessel tax treatment for a range of energy-efficient vehicles and new energy commercial vehicles from Jan 1, marking a gradual rollback of incentives that helped fuel the rapid expansion of the country's clean vehicle industry.

China will scrap preferential annual vehicle and vessel tax treatment for a range of energy-efficient vehicles and new energy commercial vehicles from Jan 1, marking a gradual…

Announcement by central government ministries extends the withdrawal of incentives for new-energy vehicles and energy-saving cars.

The policy shift, effective in 2027, aims to replenish municipal coffers and reform a tax system strained by the country’s rapid transition away from gasoline cars