Effective September 1, the Ministry of Finance, GACC and SAT's Announcement on Adjusting Consumption Tax Policies for Some Batteries (2026 No. 20) takes effect. On August 27, the SAT released its third Q&A on consumption tax policy detailing collection rules. Policy points: from September 1, 2026, consumption tax at 2% applies to mercury-free primary batteries, nickel-metal hydride batteries, lithium primary batteries, lithium-ion batteries and all-vanadium flow batteries, rising to 4% from September 1, 2027; from April 1, 2027 photovoltaic (solar) batteries are taxed at 2%, rising to 4% from April 1, 2028. On exemptions, from September 1, 2026 to December 31, 2028, sodium-ion batteries, solid-state batteries, fuel cells and perovskite/tandem/gallium-arsenide cells among PV batteries are exempt from consumption tax.
The Q&A clarifies collectionfirst, battery clusters fall under 'battery groups' in the scope notes - enterprises that purchase lithium-ion cells and assemble them into battery clusters for sale should pay consumption tax, but may deduct the tax already paid on raw materials based on quantities used in production; energy storage systems, as complete electrical equipment made from batteries, are not taxable battery products and need no consumption tax. Second, power banks (portable mobile power sources) are not taxable battery products. Third, self-produced batteries used for rental or battery-swapping are taxable upon transfer for use. Fourth, exported batteries continue to enjoy export tax refund/exemption; batteries purchased externally and used to produce vehicles for export are not refundable.
This is one of the most important policy nodes for the sodium industry: lithium adds 2% cost burden (4% from 2027) while sodium remains exempt, directly widening sodium's relative cost advantage in storage, two-wheelers and other scenarios, consistent with the industry judgment of a 'golden window opening from September 1'.