In an effort to foster the adoption of more electric vehicles, China has announced that all electric, hybrid and fuel cell vehicles will be exempt from the purchase tax until 2017. Currently China’s car buyers have been slow to adopt electric and hybrid vehicles because of the higher prices and charging infrastructure, but the Chinese government hopes that the new tax cut will make them more attractive.

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The tax exemption applies to all electric, hybrid and fuel cell vehicles sold between September, 2014 and the end of 2017. The tax exemption, which is 10 percent of the value of the vehicle, applies to imported vehicles as well those produced in China. China has been plagued by air pollution and a growing dependence on oil, but the Chinese government hopes that the new tax exemption and existing subsidies will increase the uptake of “greener,” less-polluting vehicles.

Related: China to Set Absolute Carbon Dioxide Emissions Cap in 2016

Currently there are only about 70,000 electric vehicles in use in China, but by 2020 the government hopes that number will increase to five million. One of the biggest hurdles that the government faces is the lack of charging infrastructure in the country, but Tesla is planning to establish a manufacturing plant in China and launch a nationwide battery charging and service network in the country by 2015.

Via The Guardian