On July 16, 2026, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation jointly issued the "Announcement on Adjusting the Consumption Tax Policy for Some Batteries" (No. 20 of 2026), which will gradually adjust the consumption tax policy for some battery products from September 1, 2026.

Starting from September 1, 2026, a consumption tax of 2% will be levied on mercury free primary batteries, nickel metal hydride batteries, lithium primary batteries, lithium-ion batteries, and all vanadium flow batteries

Starting from September 1, 2027, the consumption tax rate for the above-mentioned products will be raised to 4%

Starting from April 1, 2027, a consumption tax of 2% will be levied on photovoltaic cells

Starting from April 1, 2028, the consumption tax rate for photovoltaic cells will be raised to 4%

From September 1, 2026 to December 31, 2028, sodium ion batteries, solid-state batteries, and fuel cells will be exempt from consumption tax

Perovskite cells, stacked cells, and gallium arsenide cells in photovoltaic cells are exempt from consumption tax during the same period

Battery products that enjoy tax reduction and exemption policies shall comply with the national standards of the product

Taxpayers must obtain a qualified testing report issued by a CMA qualification testing institution before the first declaration of tax reduction or exemption

Taxpayers who purchase, commission processing, or import battery products that have already paid consumption tax for continuous production of taxable battery products may deduct the amount of consumption tax paid according to the quantity of production and use

Taxpayers who produce taxable battery products for their own use and use them for continuous production of taxable battery products are not required to pay consumption tax