China reviews vehicle tax bill

China’s legislature is reviewing a draft law on vehicle taxation. The law will reduce taxes on energy-saving and clean energy-powered vehicles while imposing more taxes on cars with big engines.
Currently, the tax on passenger vehicles in China ranges from RMB360 (US$54) to RMB660 per unit.
Finance Minister Xie Xuren said taxes on vehicles with engines smaller than 1.6 liters – which account for 58% of China’s passenger cars – will be reduced slightly or kept unchanged.
Taxes on cars with engines bigger than 1.6 liters but smaller than 2.5 liters will see a "moderate" increase, while cars with engines larger than 2.5 liters will be slapped with a "relatively large" increase.
CRIEnglish.com reports that taxes on motorcycles, three-wheel motor vehicles and low-speed trucks mainly used in rural areas will be reduced or remain unchanged. Owners of energy-intensive and highly-polluting cars and vessels will have to pay more tax.