BEIJING, July 17 (Xinhua) -- China will phase in adjustments to its consumption tax policy on batteries starting Sept. 1 this year in a move that analysts said will respond to the changing dynamics of China's battery industry, an official announcement on Friday noted.
Under the new rules released by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration, mercury-free primary batteries, nickel-metal hydride batteries, lithium primary batteries, lithium-ion batteries and all-vanadium redox flow batteries will be taxed at 2 percent from September 2026 and at 4 percent from September 2027. Photovoltaic cells will face a 2-percent tax from April 2027 and will be taxed 4 percent from April 2028.
Meanwhile, certain new-technology batteries will enjoy a temporary exemption from consumption tax for a specified period: sodium-ion batteries, solid-state batteries, fuel cells and advanced photovoltaic types such as perovskite, tandem and gallium arsenide cells will remain tax-free from September 2026 through December 2028.
The country currently levies a 4-percent consumption tax on batteries, a policy in place since February 2015, with seven categories including lithium primary, lithium-ion and solar cells exempted.
The policy adjustment will help better leverage the regulatory role of consumption tax to promote resource conservation and environmental protection, while also facilitating the healthy and high-quality development of the battery sector, and driving technological progress and industrial upgrading, analysts said. ■
