On July 17, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration issued a joint announcement adjusting the consumption tax policy on certain battery products.
Effective September 1, 2026, a consumption tax at a rate of 2% shall be levied on mercury-free primary batteries, nickel-metal hydride (Ni-MH) batteries (also known as hydrogen-nickel batteries or Ni-MH batteries), lithium primary batteries, lithium-ion batteries, and all-vanadium redox flow batteries. Effective September 1, 2027, the consumption tax rate on the aforementioned battery products shall be increased to 4%.
Effective April 1, 2027, a consumption tax at a rate of 2% shall be levied on photovoltaic cells (also known as solar cells). Effective April 1, 2028, the consumption tax rate on photovoltaic cells shall be increased to 4%.
From September 1, 2026, to December 31, 2028, sodium-ion batteries, solid-state batteries, fuel cells, as well as perovskite solar cells, tandem solar cells, and gallium arsenide solar cells (all of which fall under the category of photovoltaic cells), shall be exempt from consumption tax.
Edited by Cassie Li, lixiangying@mysteel.com
