New Energy Automobile Industry Beware of "Nutrient Surplus"

It is a fact that new energy vehicle subsidies have been retreated year by year. Under such circumstances, the cancellation of purchase tax preferential policies will have a great impact on the market, which will significantly increase the production costs of enterprises, dampen consumer enthusiasm for buying cars, and is not conducive to new Energy car promotion.

Adjustments after 16 years

On August 7, the official website of the Ministry of Finance issued a notice on the "People's Republic of China Vehicle Purchase Tax Law (Draft for Solicitation of Comments)" to publicly solicit opinions from the public. The public can submit comments by September 6, 2017 through corresponding channels and methods.

After a lapse of 16 years, the “Draft for Soliciting Opinions” is a reasonable adjustment to the “Provisional Regulations on Vehicle Purchase Tax of the People's Republic of China” implemented since January 2001 to enhance its scientificity, stability and authority. Protect the rights of taxpayers.

Compared with the "Provisional Regulations on Vehicle Purchase Tax of the People's Republic of China", the "Draft for Comment" maintains the current tax rate of 10%. the difference is:

Change the taxation target of vehicle purchase tax to four categories: automobiles, motorcycles, trailers and trams;

Four kinds of situations and methods for determining the tax rate for purchase tax of vehicles have been specified, and four conditions for tax reduction and exemption have been clarified;

Canceled the provisions of the State Administration of Taxation on the minimum taxable prices for taxable vehicles;

Newly added "If the taxpayer returns the vehicle for which the vehicle purchase tax has been collected to the vehicle production and sales enterprise, he may apply to the competent tax authority for refund of the tax on vehicle purchase tax already paid".

Among them, the four tax relief cases refer to:

First, in accordance with international practice and the principle of reciprocity, tax exemption shall be imposed on vehicles used by foreign embassies and consulates and consulates of international organizations that are subject to tax exemption in accordance with the law, and international organizations in China, and their personnel.

Second, in order to support the construction of national defense, the army and the armed police forces are exempted from taxation for vehicles that are listed in the equipment ordering plan;

Third, considering that non-transporting vehicles with fixed devices are mainly used for special operations such as construction and construction, and they do not have the main function of carrying people or carrying cargo. Therefore, the non-transport vehicles with fixed devices are exempt from taxation.

Fourth, the State Council approves tax exemptions or tax reductions in other situations. Provisions such as eligible new-energy vehicles, public steam vehicles, and other temporary purchase tax policies for vehicle purchases may continue to be authorized by the State Council.

Toddler's new energy vehicles can not do without support

In order to encourage the promotion and application of new energy vehicles, in August 2014, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology jointly issued the “Announcement on the Exemption of Purchase Taxes for New Energy Vehicles”, pointing out that new energy vehicle models that are exempted from vehicle purchase tax will be included. The Catalogue of New Energy Vehicles will be exempt from purchase tax, as of December 31, 2017. In other words, by the end of this year, the policy of exempting purchase tax for new energy vehicles will not be effective.

At the same time, the subsidies for new energy vehicles in 2017 will be reduced by 20% compared with 2016, and at the same time, it has been clarified that local financial subsidies must not exceed 50% of the central government subsidy. The total amount of the two subsidies has been reduced by a maximum of 44,000 yuan more than in the past. For most consumers, the rate of decline of the subsidies is obviously too fast.

Faced with the expiry of the exemption-free tax policy and the declining subsidy, the relevant organizations and auto makers have all voiced their desire to extend the policy of exempting new energy vehicles from purchase taxation.

Xu Yanhua, deputy secretary-general of the China Association of Automobile Manufacturers, believes that it is a fact that new energy vehicle subsidies have been retreated year by year. Under such circumstances, the cancellation of purchase tax preferential policies will have a great impact on the market and will greatly increase the production costs of enterprises. The consumer enthusiasm that dampens consumers is not conducive to the promotion of new energy vehicles.

Zhang Qingping, the deputy general manager of Beiqi New Energy, said: “If several preferential policies disappear at the same time, it will inevitably cause the rebound of new energy vehicle prices, which will have a greater inhibitory effect on consumption. Therefore, it is necessary to extend the time for exemption of purchase tax and avoid negative stacking. The effect occurs at the same time."

In the case of loud calls, on July 11th, the China Automobile Association had stated that the proposal to extend the purchase tax exemption for new energy vehicles had been submitted to the relevant ministries and commissions.

Beware of "nutrition excess"

The report submitted by the China Automobile Association suggests that the exemption period for purchase tax be extended to 2025. Most of the industry insiders hold the same view on this proposal, but there is no lack of different voices.

In order to promote new energy vehicles, China has introduced a number of preferential policies. In addition to subsidies from the central government and local governments, there are restrictions on unlimited and unlimited purchases. In addition, strong support was provided for the construction of charging facilities.

Liu Minghui, vice president of the Technical Research and Development Institute of FAW Technology Center and director of the New Energy Department, said: “New energy vehicles need policy support, but they cannot 'nutrition excess.' A large number of direct or indirect financial subsidies will cause great pressure on fiscal funds. ”

Liu Minghui also stated that the exemption of purchase tax was extended to 2025, and the time span was too long, which could delay the marketization of new energy vehicles.

When it comes to the marketization of new energy vehicles, the dual-point management method to be released in the near future is definitely the focus of the automotive industry. The purpose of the double-integration policy is to promote energy-saving and emission-reduction of automobiles, and to continue to promote the development of new energy vehicles in China after the subsidy retreat and cut-off.

According to Dong Yang, deputy chairman of China Automobile Association, the double-credit policy is likely to formally land in late August this year.