2026 Customer Notice on Adjustment of New Energy Vehicle Purchase Tax in China

Dear Distributors and Customers,

         According to the latest new energy vehicle purchase tax policy issued by the State Administration of Taxation, from January 1, 2026 to December 31, 2027, the purchase of new energy vehicles will be subject to a reduced tax rate of 5%, which is half of the original 10% purchase tax rate. The maximum tax reduction for each new energy passenger vehicle shall not exceed RMB 15,000.

Calculation Method:

1. For vehicles priced at RMB 300,000 or below: purchase tax is levied at 5%.
   Example: For a RMB 200,000 new energy vehicle, the purchase tax is
   200,000 ÷ (1 + 13%) × 5% ≈ RMB 8,849.

2. For vehicles priced above RMB 300,000: purchase tax is calculated at 10%, then reduced by a maximum deduction of RMB 15,000.
   Example: For a RMB 500,000 new energy vehicle, the purchase tax is
   500,000 ÷ (1 + 13%) × 10% − 15,000 ≈ RMB 29,248.

         In accordance with the above policy, our business managers will include the purchase tax in the vehicle quotation based on the actual tax rate applicable to the vehicle. This notice is hereby issued for your information.

                                                                                                                                                                                                                                   Sichuan Xinghezong International Trade Co., Ltd.