Opinions sought for vehicle tax proposal

By Gao Yuan (
Updated: 2010-10-29 13:27
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The National People's Congress (NPC), China's top legislature, on Thursday posted a vehicle and vessel use tax law proposal on its website to solicit opinions. Taxes levied on vehicles will be divided into seven grades by displacement, according to the draft.

Automobiles with a displacement lower than one liter will pay at least 60 yuan ($9) a year if the law is adopted.

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Sixty yuan is the lowest charging grade, according to the proposal. Automobiles with a displacement of more than four liters will pay as much as 5,400 yuan - the highest rank in the draft.

The proposal also states that provincial governments can implement their own charging standards within the seven-grade charging guidelines.

A State Council executive meeting approved the draft law on Tuesday, and committee members decided to submit it to lawmakers to discuss, according to the NPC's official website.

The law can improve and standardize the taxation system, and is fair, environmentally friendly and an energy-saving measure, according to a statement issued following the meeting and posted on the website.