China will cut the export VAT rebate on electric cars from 13% to 9% in April 2027

China's Ministry of Finance and State Taxation Administration said the export VAT rebate on new energy vehicles drops from 13% to 9% from 1 April 2027, with the rate set by the export date on the customs declaration. The change covers battery-electric and plug-in hybrid passenger cars, electric buses and electric tractor units. Deutsche Bank estimated the cut would trim BYD's net profit on every car it exports.

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