Lithium Battery Consumption Tax Restored in Sept 2026: EV Costs Set to Rise

On July 16, 2026, China's Ministry of Finance, Customs, and Taxation jointly announced that lithium battery consumption tax will be restored from September 1, 2026, ending the 11-year battery tax exemption. The first-year rate is 2%, rising to 4% from September 2027. Industry estimates suggest pure EV manufacturing costs will increase by RMB 396–1,200 per vehicle. This is seen as a key signal of NEV tax incentives gradually phasing out and aligning with ICE vehicle taxation.

4542 days ago