Three departments adjust some battery consumption tax policies: starting April 1, 2027, the consumption tax on photovoltaic cells will be levied at a 2% rate

The Zhitong Finance App learned that on July 17, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation issued a notice to adjust some battery consumption tax policies. From September 1, 2026, consumption tax will be levied on mercury-free primary batteries, metal hydride nickel batteries (also known as hydrogen-nickel batteries or nickel-metal hydride batteries), lithium primary batteries, lithium-ion batteries, and all-vanadium liquid flow batteries; from September 1, 2027, consumption tax will be levied on these battery products at a 4% rate. From April 1, 2027, consumption tax will be levied on photovoltaic cells (also known as solar cells) at a 2% rate; from April 1, 2028, consumption tax will be levied on photovoltaic cells at a 4% rate. From September 1, 2026 to December 31, 2028, perovskite batteries, laminated batteries, and gallium arsenide batteries in sodium-ion batteries, solid-state batteries, fuel cells, and photovoltaic cells are exempt from consumption tax.

The original text is as follows:

Notice on Adjusting Consumption Tax Policies for Some Batteries

Ministry of Finance, General Administration of Customs, General Administration of Taxation Notice 2026 No. 20

In order to further improve the consumption tax system, the battery consumption tax policy adjustments are now announced as follows:

1. From September 1, 2026, consumption tax will be levied on mercury-free primary batteries, metal hydride nickel batteries (also known as hydrogen-nickel batteries or nickel-metal hydride batteries), lithium primary batteries, lithium-ion batteries, and all-vanadium liquid flow batteries; from September 1, 2027, consumption tax will be levied on these battery products at a 4% rate.

2. From April 1, 2027, consumption tax will be levied on photovoltaic cells (also known as solar cells) at a rate of 2%; from April 1, 2028, consumption tax will be levied on photovoltaic cells at a 4% rate.

3. From September 1, 2026 to December 31, 2028, perovskite batteries, laminated batteries, and gallium arsenide batteries in sodium-ion batteries, solid-state batteries, fuel cells, and photovoltaic cells are exempt from consumption tax.

4. Battery products produced and processed by taxpayers that enjoy the above tax exemption policy shall meet the national standards for that product, and products that do not meet national standards or do not have national standards shall not enjoy the tax exemption policy described above.

Taxpayers should obtain an inspection report issued by an inspection agency that complies with the corresponding national standards before declaring the consumption tax exemption for battery products for the first time. The inspection agency shall hold the “Inspection and Testing Agency Qualification Certificate” (using the CMA logo) issued by the market supervision and administration department at the provincial level or above in accordance with law, and the corresponding battery inspection items are included in the attached schedule of the “Inspection and Testing Agency Qualification Certificate”.

5. Where taxpayers purchase, contract processing and withdraw from a manufacturing enterprise, or directly import battery products that have paid consumption tax by means of self-employment or entrustment for the continuous production of taxable battery products, they are allowed to deduct the amount of consumption tax already paid on the raw materials according to the quantity collected in the current production period.

6. Taxable battery products produced by taxpayers for their own use shall not pay consumption tax; those used for continuous production of products other than taxable batteries or for other purposes shall declare and pay consumption tax at the time of transfer and use.

7. In addition to the above provisions, other matters relating to the collection and administration of battery consumption tax are carried out in accordance with the “Provisional Regulations of the People's Republic of China on Consumption Tax”, “Implementation Rules of the Provisional Consumption Tax Regulations of the People's Republic of China” and other relevant regulations.

Where the provisions of the “Notice of the Ministry of Finance and the State Administration of Taxation Concerning Consumption Tax on Battery Coatings” (Finance and Taxation (2015) No. 16) and the “Notice of the Ministry of Finance and the State Administration of Taxation on Imposing Import Consumption Tax on Battery Coatings” (Financial Tariff (2015) No. 4) are inconsistent with the provisions of this Notice, the provisions of this Notice shall prevail.

We hereby announce it.

Ministry of Finance, General Administration of Customs, General Administration of Taxation

July 16, 2026

This article was selected from the “Ministry of Finance” official website, Zhitong Finance Editor: Li Fu.