From 13% to 9% from April 2027: China will reduce export subsidies for electric vehicles

China will decrease the VAT refund rate for new energy vehicles (NEVs) from 13% to 9% starting April 1, 2027. Refunds for electronic cigarettes and related products will also be eliminated at that time, while consumption tax policies remain unchanged. This move is part of a series of measures to gradually reduce fiscal incentives for green sectors, including the removal of refunds for photovoltaic products in April 2026 and batteries in January 2027.