New vehicle tax plan

(China Daily)
Updated: 2007-11-21 07:10

The planned tax on car exhaust emissions should be introduced after prudent consideration, says an article in Beijing Youth Daily. The following is an excerpt:

Officials from the State Environmental Protection Administration said that the administration is working closely with the taxation and the fiscal authorities to draft a plan for collecting taxes on polluting emissions.

One of the planned taxes is for exhaust emissions from vehicles, the tax will be added to the fuel price.

The tax is obviously part of the country's efforts to step up environmental protection. It is foreseeable that this tax, once approved, is going to change the choices of car owners, potential car buyers and even the automobile industry.

Therefore, it is necessary for the authorities to settle several issues before the formal collection of this tax from millions of car owners.

The tax rate should be set at a proper level. If too low, it would have a limited influence on reducing exhaust emissions. But if too high, it would also harm the development of the automobile industry.

Car owners are already paying various fees and taxes for owning or using their vehicles. The authorities should review the existing fees and taxes and write off or suspend those that overlap the car exhaust tax.

The government should earmark the tax for treating pollutants or subsidizing green businesses, so that the money is used to protect our environment and prove the validity of the tax itself.

An important point is that the authorities should consult the public on details of the tax, like the method of collection, rate of tax, and the standard for car exhaust emissions. An open discussion of the tax should be permitted so that it can be well received by the public.

(China Daily 11/21/2007 page10)



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