Official data showed that the exemption from tax on the purchase of new energy vehicles in China increased by 36 percent year on year in the first quarter of 2023, as part of the country's continuous efforts to boost consumption of such vehicles and drive green development.

Data from the National Taxation Authority revealed that tax exemptions worth 21.24 billion yuan (about 3.09 billion U.S. dollars) were provided from January to March 2023.

China has implemented a policy of exemption from tax on the purchase of new energy vehicles since 2014, to support the development of this sector, as it was announced in September 2022 that this preferential tax policy would be extended until the end of this year.

Those tax incentives partly contributed to the rapid growth of China's NEV sector over the years, as retail sales of NEVs jumped 22.4 percent year on year to 1.31 million units, according to industry data.