Experts suggest imposing a consumption tax on new energy vehicles and allocating the additional revenue to local governments.
With the development and growth of the new energy vehicle industry, the proportion of new energy vehicle sales exceeds 50%. Related tax incentives are gradually being reduced, and there is a growing call for "equal rights for oil and electricity". One of the suggestions is to consider imposing a consumption tax on new energy vehicles. Recently, the magazine "International Taxation", under the supervision of the State Administration of Taxation, published an article by Professor Liu Yi from Peking University's School of Economics, titled "Improving the Automobile Consumption Tax System and Designing a Tax-sharing Mechanism". The article proposes to fully include new energy vehicles in the "small cars" tax category of the consumption tax, and allocate the resulting additional fiscal revenue to local governments.
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