China's Ministry of Finance and the State Taxation Administration issued a joint announcement on October 12 adjusting export tax rebate policies for certain products. Effective April 1, 2027, the VAT export rebate rate for new energy vehicles will be reduced from 13% to 9%. Export VAT rebates on e-cigarette devices and related products will be eliminated entirely. For products subject to consumption tax, the export consumption tax policy remains unchanged and continues to follow existing rebate and exemption rules. The applicable rebate rate is determined by the export date noted on the customs declaration.
The announcement is widely read as an effort to optimize the structure of export tax rebates. Analysts note that automakers with a high share of exports will need to rebalance cost and pricing strategies, prompting closer scrutiny of overseas localization plans and profitability resilience. Battery makers, component suppliers and the export services chain will also be affected. Although the rebate window narrows, the policy provides a transition period, giving companies room to offset the change through localization and product upgrades. The actual impact will depend on execution and pricing power.
Source: Ministry of Finance / State Taxation Administration / Securities Times
