China’s Ministry of Finance, General Administration of Customs, and State Taxation Administration have jointly announced a phased consumption tax on several battery technologies and solar cells while providing temporary tax exemptions for selected next-generation battery and solar technologies.The Chinese government has announced that a 2% consumption tax will apply to mercury-free primary batteries, nickel-metal hydride batteries, lithium primary batteries, lithium-ion batteries, and vanadium redox flow batteries beginning September 1, 2026. The tax rate on these products will increase to 4% from September 1, 2027.
