The Chinese government published on March 14, 2024 the Action Plan on Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods, as issued by the State Council, calling for providing more policy support in terms of finance, tax and investment.
The plan stresses four major tasks, including equipment renewal, trading-in of consumer goods, recycling of used goods, and standard leveling-up, with the relevant work arrangements specified. In terms of policy support, it urges to improve the tax policies to support energy and water conservation, environment protection, safe production of dedicated equipment, as well as digital and intelligent transformation. It also proposes to promote the practice of "reversely issuing invoices" to natural-person sellers of scrapped products by resource recycling firms by applying a simplified VAT levying policy on the firms, improving the supporting measures for the collection of income tax and optimizing tax collection and management standards and methods.