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Published on 07/17/2026 at 05:57 am EDT – Modified on 07/17/2026 at 06:00 am EDT
BEIJING, July 17 (Reuters) – China will impose a consumption tax on some previously tax-exempted battery products, including lithium-ion batteries and photovoltaic cells, a finance ministry statement said on Friday.
o China will levy a 2% consumption tax on battery products including lithium primary batteries and lithium-ion batteries from September 1, the statement said. The rate will rise to 4% on September 1, 2027.
o A 2% consumption tax will be imposed on solar cells starting April 1, 2027. The rate will rise to 4% after a year.
o Consumption tax will be exempted for products including sodium-ion batteries, solid-state batteries, fuel cells and certain advanced types of solar cells from September 1, 2026 to the end of 2028.
o China currently imposes a 4% consumption tax on battery products, but lithium-ion batteries, solar cells, fuel cells and lithium primary batteries are exempted, according to regulations released in 2015.
o Lithium-ion batteries are rechargeable batteries used in a wide range of products, from electric vehicles to smartphones and laptops.
o Chinese policymakers have been trying to rein in industrial overcapacity across sectors including photovoltaics and EV batteries amid weak domestic demand.
o The policy move will help to upgrade industry and protect the environment, state-run news agency Xinhua said, citing industry insiders.
(Reporting by Yukun Zhang and Ryan Woo; Editing by Jan Harvey)
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