Is China Going Green, Part XVII: Increased Tax On Large Cars Says "Sort Of."
China Environmental Law Blog has a short post, entitled, "Big Cars Face Big Tax: Fat Cats Unfazed," nicely summarizing recent changes (to become effective on September 1) to China's car tax:
Cars with engines above 4-liter capacity: 40% tax Cars with engines between 3 and 4 liters: 25% tax (up from 15%) Cars with engines below 1-liter capacity: 1% tax (reduced from 3%)
The stated goal is to reduce pollution and energy use. What about just removing the heavy Chinese government fuel subsidy?
http://www.chinalawblog.com/cgi-bin/mt/mt-t.cgi/2780
Is China Going Green, Part XVII: Increased Tax On Large Cars Says "Sort Of.":


Comments
Flora Sapio has posted this recently on Forgotten Archipelagoes:
"According to a document (全文) recently made public by the Ministry of Environmental Protection, illegal dumpers can be punished with up to 15 days administrative detention, which they will spend at a public security detention centre (zhi'an juliusuo, 治安拘留所).
The legal basis for this measure is given by the Law on Administrative Penalties for Public Security (全文), the Water Pollution Prevention Law (全文), and an opinion of the Legislative Affairs Work Committee entitled "Opinion concerning the question about using administrative detention for the act of illegal disposal of waste" (全国人大法工委对违法排污行为适用行政拘留处罚问题的意见/全文)."
http://florasapio.blogspot.com/2008/08/administrative-detention-for-illegal.html
Very truly yours,
Rich Kuslan, Editor
Asiabizblog
www.asiabizblog.com
Posted by: Richard Kuslan, Editor, Asiabizblog, www.asiabizblog.com | August 14, 2008 1:12 PM
@ Dan :
"What about just removing the heavy Chinese government fuel subsidy?"
Maybe because this would boost the (already alarming) inflation rate?
Anyway this is good news for Japanese and European car-makers, for it should help the Chinese market to open up to compact (and energy efficient) cars. Hopefully.
Posted by: Jeremy | August 14, 2008 8:39 PM
I, too, doubt that this will have much effect. People will save up for the kind of car that suits their desires, and the kind of people who buy 3-liter engines aren't going to be persuaded that a 1-liter engine is a good substitute. You're right: eliminating gas subsidies is the best thing to do.
Posted by: William | August 15, 2008 1:24 AM