Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Blog China Will Exempt Tesla From Auto Tariffs

This site may earn commission on affiliate links.


Tesla vehicles will be exempt from a purchase tax in China, the country’s automotive regulatory body announced Friday.

The Ministry of Industry and Information Technology issued the memo, which outlined broad tax exclusions for electric vehicles, but did not give a reason why the car’s were excluded. The Tesla models specifically mentioned include the Model 3, Model S and Model X.

The move will help Tesla avoid increased costs caused by tariffs in the current trade war with China. Last week China said it planned to begin taxing autos tariffs – a 25% tariff on cars imported from the U.S. as well as a 5% tariff on auto parts and components. The tariff is set to go into effect on Dec. 15.

 
Last edited by a moderator:
  • Disagree
Reactions: MP3Mike
"China said it planned to begin taxing autos tariffs"

Ok, I admit I don't know what that is.
It will be good when they start making the vehicles there,
Probably start at like $25,000 (just guessing here but labor is HUGE cost, plus the cost of shipping...)
 
...Tesla vehicles will be exempt from a purchase tax in China...

Please fix the title of this thread.

Tariff is an imported tax.

Purchase tax is in addition to tariff if there's any.

In this case, today's announcement does not state that there's a tariff-free for Tesla.

It's about Purchase Tax or commonly known as Sales Tax in the USA.
 
I don't read Chinese but by Google Translate, I understand that Sales Tax Exemption has been implemented for domestic new energy vehicles. However, on Friday, all Tesla cars are now included even none is officially made in China and there's no plan to make Model S and X in China in the future either.

新一批免征车辆购置税新能源车公布:特斯拉全系车型在列 - cnBeta.COM 移动版

From Google Translate:

A new batch of new energy vehicles exempted from vehicle purchase tax announcement: Tesla's full range of models are listed
0fast technology 2019-08-30 19:52:18

Summary:
The news that the rumored Tesla was exempt from the purchase tax in China has now been confirmed. On August 30th, the Ministry of Industry and Information Technology released a catalogue of new energy vehicle models (the twenty-sixth batch) exempt from vehicle purchase tax. All models of Tesla enter the catalogue of new energy vehicles that are exempt from vehicle purchase tax. According to the catalogue, Tesla Model 3, Model S and Model X have a total of 11 models, all of which are exempt from purchase tax .

In addition to Tesla, BYD's e5, e2, e3 and Qin, Great Wall Motor's Euler R1 and R2, Guangzhou Automobile Group's Chuanqi AION LX, and Chuanqi AION.S are all listed.

Exemption from purchase tax is a subsidy policy for new energy vehicles. The state has already introduced a policy of exemption from tax on new energy vehicles, but Tesla is an imported model, and Sanhua (battery electronically controlled motor) is a domestically produced girl. Tesla has not been exempt from purchase tax.

The Tesla all-in-one model entered the catalogue of new energy vehicles that are exempt from vehicle purchase tax, which is a big plus for consumers who purchase Tesla in the future.

However, Tesla has just raised a wave of price. On August 30th, we learned from the official website of Tesla that the current Tesla Model 3, Model S and Model X have all increased their prices. Among them, 2019 Model 3 standard battery upgrade models are currently priced at 36.39. Ten thousand yuan, the price increase of 0.8 million yuan; 2019 Model 3 long-life all-wheel drive version of the model is currently priced at 439,900 yuan, an increase of 1.0 million yuan; 2019 Model 3 Performance high-performance all-wheel drive version of the model price is adjusted to 50.99 million yuan, the price increase of 10 million yuan.

The following is the full text of the Ministry of Industry and Information Technology announcement:

According to the Notice of the Ministry of Finance and the Ministry of Industry and Information Technology of the Ministry of Finance on the Exemption of New Energy Vehicle Vehicle Purchase Tax (No. 172 of 2017), Announcement of the State Administration of Taxation of the Ministry of Finance and Industry of the Ministry of Industry and Information Technology of the People's Republic of China (No. 17 of 2018), the Ministry of Industry and Information Technology and the State Administration of Taxation and other departments submitted to the enterprise to enter the "new energy vehicle model catalogue exempted from vehicle purchase tax" materials and the inclusion of "exempt vehicles" The models with no production or import volume in the 12 months after the purchase of new energy vehicle models were reviewed. The list of models of new energy vehicle models exempted from vehicle purchase tax (the twenty-sixth batch), the name list of automobile manufacturing enterprises, and the list of models for revoking the catalogue of new energy vehicles exempt from vehicle purchase tax will be announced.


4f4b3a93781b1ba.png


2c762b0c8ef8286.jpg







Another source in Chinese:

免征车辆购置税新能源汽车车型目录发布 特斯拉在列

Exemption from vehicle purchase tax, new energy vehicle model catalogue released Tesla in the column
August 30, 2019, 19:58, Beijing News Network

Original title: Catalogue of new energy vehicle models exempt from vehicle purchase tax, Tesla is listed

  On the 30th, the Ministry of Industry and Information Technology website released a catalogue of new energy vehicle models (the twenty-sixth batch) exempt from vehicle purchase tax.

  According to the Notice of the Ministry of Finance and the Ministry of Industry and Information Technology of the Ministry of Finance on the Exemption of New Energy Vehicle Vehicle Purchase Tax (No. 172 of 2017), Announcement of the State Administration of Taxation of the Ministry of Finance and Industry of the Ministry of Industry and Information Technology of the People's Republic of China (No. 17 of 2018), the Ministry of Industry and Information Technology and the State Administration of Taxation and other departments submitted to the enterprise to enter the "new energy vehicle model catalogue exempted from vehicle purchase tax" materials and the inclusion of "exempt vehicles" The models with no production or import volume in the 12 months after the purchase of new energy vehicle models were reviewed. The list of models of new energy vehicle models exempted from vehicle purchase tax (the twenty-sixth batch), the name list of automobile manufacturing enterprises, and the list of models for revoking the catalogue of new energy vehicles exempt from vehicle purchase tax will be announced. Among them, Tesla is in the line, involving multiple models of Model 3, Model S and Model X.
 
Excellent, keep those ships rolling with loads of EVs.
It said no reason was given.... did they have to state it?
Pollution! Duh.

It actually will make pollution WORSE. China is not phasing out coal, so might as well run coal-fired steam engined Teslas down their streets.

FC342-CDB-12-C2-4110-8-BEB-358-BCAEF52-CD.png


Asia, in general, is pathetic in its indifference to using coal.

Deployment of EVs has to go hand-in-hand with a government policy that moves proactively away from fossil fuels or they aren't making things a whole lot better.

The real reason for the elimination of the sales tax (as has been noted, this has nothing to do with tariffs or excise taxes) is a handout to the wealthy. Robbing the poor to give to the rich.
 
Ok, but are the coal powered generation happening in cities? No, so running EVs will move the pollution AWAY from the cites. Yes coal is still bad for CO2 and whatever else it spews into the atmosphere, I just meant they are trying not to choke to death in the cities.
 
...It actually will make pollution WORSE...

This false information keeps repeating itself so often just like the same way that Tesla is on its deathbed.

First of all, whether there are electric cars or not, electric utilities must produce electricity 24/7 even at night when the demand is lowest.

They don't shut down their generators at night because they are gigantic and take a long time to restart.

Most electric vehicles charge at night so they barely affect electric production / demand at all.

China government was willing to sacrifice its air for a few bucks and it was evidenced in the thick smog as seen in 2013 picture:

130131130754-01-beijing-smog-0131-horizontal-large-gallery.jpg



and the government has started to crack down on coals.

That's evidenced in the graph above that it was 72% and trending down.

It's also evidenced in current China's air. Much more improved and you hardly hear any report on the thick smog anymore.

The government reversal toward encouraging coal policy is also evidenced as in 1999, there was hardly any solar panel installed. Zero.

As of 2018, it has installed 44,380 MegaWatts per year.

That in compare with 2016 14,626 MW installed in the USA (34,540 MW in 2016 in China).
 
...Robbing the poor to give to the rich.

Chinese consumers bought 1.3 million electrical vehicles last year, 2018. Most of them are domestically made with no sales tax.

That's a lot of rich people in China!

The 2018 Chinese salary average is 82,461 Yuan or $11,522.28.

Most bought electric vehicle over there is BYD which costs about 259,800 Yuan or $36,301.85 which is 3 times their annual salary.

However, remember that the incentives can cut the EV price as much as 60% over there.
 
It actually will make pollution WORSE. China is not phasing out coal, so might as well run coal-fired steam engined Teslas down their streets.

FC342-CDB-12-C2-4110-8-BEB-358-BCAEF52-CD.png


Asia, in general, is pathetic in its indifference to using coal.

Deployment of EVs has to go hand-in-hand with a government policy that moves proactively away from fossil fuels or they aren't making things a whole lot better.

The real reason for the elimination of the sales tax (as has been noted, this has nothing to do with tariffs or excise taxes) is a handout to the wealthy. Robbing the poor to give to the rich.
Air Pollution Facts 2019 [33 Facts That Might SHOCK You]