Energy tax may target large vehicles

Wing-Gar Chen

2006-11-04 Shanghai Daily

CHINA is studying the feasibility of implementing emissions and "energy" taxes on vehicles with large engines, typically more than three liters, to reduce pollution.

The nation should expand production of vehicles with smaller engines that cause fewer emissions, catering to demand from a greater number of consumers, Han Wenke, a director at the National Development and Reform Commission's energy research institute, said in Beijing yesterday.

China, the world's second-biggest greenhouse gas emitter, plans to spend 1.5 trillion yuan (US$189 billion) in the next 15 years to boost the use of renewable resources and cut pollution, Bloomberg News reported. The nation wants to cut its reliance on oil imports by promoting nuclear, solar and hydro power.

"It's still a study," Han said. "The earliest implementation will probably be 2010 or later."

Car sales in China, the world's third-largest vehicle market, may reach a record 6.5 million units this year, according to the China Association of Automobile Manufacturers.

Passenger traffic on China's airlines, railways roads and vessels may gain 4.3 percent to 19 billion people this year, a government-affiliated research body said in May.

It reflects gross domestic product growth that reached 10.7 percent in the first nine months of this year.

Technorati Tags: china, energy tax, vehicle