---
title: "China to End Vehicle and Vessel Tax Breaks for Energy-Saving Cars and Plug-In Hybrids From Jan. 1, 2027"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/292124985.md"
description: "China will end tax breaks for energy-saving cars and plug-in hybrids starting January 1, 2027. The Ministry of Finance and other agencies announced the removal of the half-rate tax for energy-saving vehicles and the exemption for plug-in hybrids. This shift reflects that transitional technologies have passed their cultivation phase, with strategic focus remaining on battery-electric and hydrogen fuel-cell zero-emission passenger cars."
datetime: "2026-07-08T23:55:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/292124985.md)
  - [en](https://longbridge.com/en/news/292124985.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/292124985.md)
generator: "portal-rs"
---

# China to End Vehicle and Vessel Tax Breaks for Energy-Saving Cars and Plug-In Hybrids From Jan. 1, 2027

China's Ministry of Finance, State Taxation Administration and Ministry of Industry and Information Technology have issued a notice adjusting vehicle and vessel tax incentives for energy-saving and new-energy vehicles, specifying that from January 1, 2027, the half-rate vehicle and vessel tax policy for energy-saving cars will be scrapped and the tax exemption for plug-in (including range-extended) hybrid vehicles will be cancelled, according to Jiemian News. The report cited interviews indicating that by the end of 2025, China had 43.97 million new-energy vehicles on the road, accounting for 12.01% of total vehicles; industry experts said battery-electric and hydrogen fuel-cell zero-emission passenger cars remain the long-term strategic focus, while transitional technologies that use internal combustion engines—such as plug-in hybrids, range-extended vehicles and fuel-saving hybrids—have largely passed their industry cultivation phase.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**