ANNOUNCEMENT 01 Mar 2017
March 1st, 2017 - the PRC Ministry of Industry and Information Technology published a new policy instigated by it and three other ministries calling for the development of the automotive battery industry in the PRC. It will be achieved with government investment from special funds, as well as corporation tax cuts for eligible firms.
The other participating government bodies are the Ministry of Science and Technology, the National Development and Reform Commission and the Ministry of Finance.
NUMBER OF INTERVENTIONS
PRC Ministry of Industry and Information Technology, 1st March 2017. (四部委关于印发《促进汽车动力电池产业发展行动方案》的通知)
In the PRC Ministry of Industry and Information Technology's policy released on the 1st of March 2017, a plan is laid out to boost growth in the Chinese battery industry, specifically, batteries for automobiles. One of the instruments mentioned in the plan to be used to achieve this is the use of specific government 'funds' to invest into relevant firms. The release contemplates the establishment of an industry-specific development fund as well as utilizing existing government funds designated for the IT industry more generally.
Besides the provision of funds for investment in automotive battery entreprises, the PRC Ministry of Industry and Information Technology announcement also promises the exemption from power batteries from domestic VAT and stipulates that battery producers may be eligible for reduce corporate taxes as well as other tech-related tax incentives.