China will impose a consumption tax on lithium-ion batteries and photovoltaic cells to promote industrial upgrading.

Foreign Media: China will impose a consumption tax on lithium-ion batteries and photovoltaic cells.

The Ministry of Finance stated that a 2% consumption tax will be levied on lithium primary batteries and lithium-ion batteries starting September 1, 2026, increasing to 4% from September 1, 2027; solar cells will be subject to a 2% tax starting April 1, 2027, rising to 4% one year later. Sodium-ion batteries, solid-state batteries, fuel cells, and certain advanced solar cells will be exempt from taxation between September 2026 and the end of 2028.

This move aims to curb overcapacity in the photovoltaic and power battery sectors, promote industrial upgrading, and support environmental protection.

Original article: toutiao.com/article/1870972329178124/

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