Ministry of Finance Clarifies Timeline for Battery Product Excise Tax and Exemptions

The Ministry of Finance has issued an announcement clarifying adjustments to the consumption tax policy for certain battery products. Starting September 1, 2026, a 2% consumption tax will be levied on mercury-free primary batteries, nickel-metal hydride (NiMH) rechargeable batteries, lithium primary batteries, lithium-ion rechargeable batteries, and all-vanadium redox flow batteries. From September 1, 2027, the tax rate on these battery products will increase to 4%. Additionally, beginning April 1, 2027, photovoltaic cells (also known as solar cells) will be subject to a 2% consumption tax, which will rise to 4% starting April 1, 2028. Furthermore, from September 1, 2026, to December 31, 2028, sodium-ion batteries, solid-state batteries, fuel cells, and specific types of photovoltaic cells—including perovskite solar cells, tandem solar cells, and gallium arsenide (GaAs) solar cells—will be exempt from the consumption tax.