China's Ministry of Finance and State Administration of Taxation have jointly issued Announcement No. 21 of 2020 which extends the vehicle purchase tax exemption for new energy vehicles in order to support the development of the new energy vehicle industry and promote automobile consumption.

This includes that with effect from 1 January 2021 to 31 December 2022, the purchase of new energy vehicles will be exempt from vehicle purchase tax, including pure electric vehicles, hybrid plug-in vehicles, and fuel cell vehicles. Eligible vehicles are specified in a "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax", issued by the Ministry of Industry and Information Technology and the State Administration of Taxation.

The announcement also notes that the prior exemption for new energy vehicles introduced in 2017 continues to be effective up to 31 December 2020.