Cui Dongshu: The adjustment of the consumption tax on lithium batteries is a powerful boost for vehicle manufacturers to produce batteries, and is beneficial for the growth and strengthening of the Chinese automotive industry.

The secretary-general of the China Passenger Car Association, Cui Dongshu, believes that the adjustment of the consumption tax on lithium batteries is a strong boost for whole vehicle enterprises to manufacture batteries, which is beneficial for the growth and strengthening of the Chinese automotive industry. My core judgment on this is: this policy adjustment signifies the official opening of the era of "equal rights for oil and electricity". From halving the purchase tax, canceling the vehicle tax exemption, to resuming the collection of consumption tax on batteries, the tax incentives for new energy vehicles are gradually and rhythmically being phased out. While conventional vehicles have long borne the full burden of vehicle and fuel taxes, plug-in hybrids, range-extended vehicles, and new energy commercial vehicles enjoy tax exemptions, creating a loophole where they benefit from emissions, road use, and profits without bearing the tax burden. Equal rights for oil and electricity do not mean equalization through a "one-size-fits-all" approach, but rather establishing a car tax system based on technology attributes, emissions characteristics, and usage scenarios to ensure fair taxation.