Agreement on Automotive Environmental Tax

　　Some insiders of automotive industry say that the increase in fuel tax can also achieve the goal, according to the Guangzhou Daily.

　　According to media reports, the collection of environment taxes has been agreed by the Ministry of Environment Protection and other relevant ministries and the pollution emissions from motor vehicles will be included in the scope of an environmental tax which is to be levied. Once the tax project is implemented, the car owner will have to pay for the exhausted emissions. Car owners are supposed to pay different taxes and fees based on the type of their cars.

　　Recent reports said that Zhang Yan, the Deputy Director of the Beijing Municipal Development and Reform Commission disclosed that the state has begun to examine the reform on the motor vehicle environmental taxes and charges. The news immediately gave rise to concerns from all the fields. Some car owners and enterprises still harbor their wait-and-see views.

　　Experts: There are some sorts of taxes which enhance environmental protection

　　In this regard, the Vice Dean of Taxation College of the Central University of Finance bluntly told the Guangzhou Daily that dedication to vehicle environmental taxes is not optimistic. There are three types of taxes functioning as a protection for the environment at present for the car, namely, a consumption tax, levy taxes according to the level of displacement of 3%--40%; the fuel tax and car purchasing tax that is also a large displacement of more taxation, less tax on a small displacement.

　　These three types of taxes already embody the role of environmental protection when consumers purchase vehicles. It is not economic and not in consistence with regulations to levy new taxes. Liu Heng said it was advisable to make adjustment on the original tax rate to enhance the environmental protection, such as reform on fuel taxes. Deputy Director of the Institute of Fiscal Science under the Ministry of Finance, Liu Shangxi also showed his preference to the adjustment on the original tax basis.

　　Car owners: habits of using cars will not be changed

　　Li Bing, a car owner, who lives new Qifu village, commutes to urban areas and Panyu everyday and said that the fuel monthly costs him 1,500 yuan. He expressed that despite of the tax for the emission; he will not change his habits and transfer a new car. Owing to living far away from the workplace, he must use a car.

　　An automotive business told this newspaper that there is a concern that the introduction of the tax will crack down on intentions of car consumption. The tax is intent to decrease emission and save energy, but it is more practical to encourage new car models to improve emission standards.

　　However, part of non-car owners told reporters that due to the large amount of cars, whether what kind of the car is, the problem of emission exists. The more contamination the more normal tax is.

　　Analyses of experts: a variety of environmental taxes will be introduced

　　It is learned that the experts themselves have no objection to environmental tax. What is the tax actually? Liu Shangxi pointed out that environmental tax should be a big category, instead of a new kind of tax. Anything related to environmental protection can be called an environmental tax. Fuel tax can also be called environmental taxes, as well as carbon taxes. The saying goes all sorts.

　　China’s study on the introduction of a carbon tax report was released by the Finance Division of the Ministry of Finance last October. The report recommended that after the fuel tax reform, a resource tax reform could be carried out in a proper time. As for the carbon taxes, it may be born in one to three years after the resource reform, estimated at 2012 to 2013. The environmental taxes are predicted to be released after 2014 or even later.

　　Liu Heng is in favor of reform on vehicles environmental tax so that the cars with large emission will shoulder higher taxes. Liu said the carbon tax studied for four or five years will be the first move, while the sulfur tax and emission tax are also expected to put on the agenda one after another.

　　With regard to the time when to release environmental tax, Jia Kang, Director of the Institute of Fiscal Science led by the Ministry of Finance, said the opportunity for the carbon tax should be the time when the economy is stable but not in a noticeable range of inflation. (Translator: Qinghua/Sailor)

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