Home>News Center>China
       
 

Buyers of big cars will pay more tax
By Wu Chong (China Daily)
Updated: 2005-11-25 05:47

Buyers of big cars will fork out more taxes and those who opt for smaller models will pay less under a revised auto consumption tax likely to come into force next year.

Industry experts see it as a government move to increase fuel efficiency and reduce emissions.

The current tax structure, which has three slabs for different engine sizes, is likely to have five, Zhang Jinhua, deputy director of the China Automotive Technology and Research Centre, said yesterday in Beijing.

Buyers of big cars will fork out more taxes and those who opt for smaller models will pay less under a revised auto consumption tax likely to come into force next year.
A Honda SUV is on display at a promotional activity. [newsphoto/file]

For instance, cars with engine displacement of 1 litre or less will pay 1 per cent instead of the current 3 per cent while vehicles with 4 litre or higher engines would pay between 20-25 per cent instead of the current 8 per cent.

"The consumption tax reform cannot have an immediate impact on the clean-vehicle market. But at least, it is an inspiration for car makers," Zhang said at the 4th International Clean Vehicle Technology Conference and Exhibition.

Earlier this month, Feng Fei, a senior official of the government's top think-tank, proposed that tax be levied on buyers rather than on auto producers as is done now.

"We suggest that tax be levied on car buyers directly, which will encourage them to consider buying economy vehicles with lower emissions," said Fei, director of the industry department of the State Council Development Research Centre.

At yesterday's conference, Zhang said if emissions were to be cut significantly, it would require State backing. "Substantial support from the government is needed. Without it, the price for hybrid vehicles will remain high and the market can never grow," he said.

Prius, jointly manufactured by Japan-based Toyota and the China FAW Group Corporation, will be the first hybrid car available in the Chinese market.

Zhu Yanfeng, president of the joint venture, announced on Wednesday that Prius would be available from mid-December for 250,000 yuan (US$31,000) a price tag substantially higher than the average.

(China Daily 11/25/2005 page1)



Foggy bottom
Chinese Works of Art auction in HK
Taipei County magistrate election
  Today's Top News     Top China News
 

China: Shrine visit 'pouring salt into open wound'

 

   
 

100 tons of chemicals flow into river

 

   
 

Xinjiang reports 7th outbreak in 10 days

 

   
 

Buyers of big cars will pay more tax

 

   
 

Number of jobless may peak next year

 

   
 

Man dies despite 5-million-yuan hospital stay

 

   
  Buyers of big cars will pay more tax
   
  Association suspends licence of auctioneer
   
  Warm weather brings on flu, fire warnings
   
  Son denied 'legal birthright'
   
  5.4m-yuan cancer treatment in dispute
   
  Number of jobless may peak next year
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
China to see acute auto overcapacity by 2010
   
China to be world's No.1 automaker by 2020
   
Higher tax on big cars likely at end of the year
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement