Vehicle and Ship Tax imposed by different

　　According to Guangzhou Daily, it has been confirmed by some auto companies that Vehicle and Ship Tax draft has been taken shape and now is asking for their comments. This draft intends to impose different tax according to different displacements rather than make it rigidly uniform, which generally demonstrates an orientation to encourage energy-saving and carbon emission reduction.

　　The maximum tax of large displacement cars can reach 10,000

　　Yesterday, an authoritative source confirmed that has already received the draft forwarded by the relevant departments, which has made clear that Vehicle and Ship Tax will be levied according to different displacements.

　　Previously, Vehicle and Ship Tax simply adopts the same standard. For example, the taxes of passenger cars were only divided into two steps. 1.1-liter Xiali and large displacement Mercedes-Benz, BMW were all charged about 480 Yuan per year. However, according to the new rules, the taxes of passenger cars will be divided into seven grades. Cars with a displacement of 1.0 liter and lower is the first class, and 1.0 to 1.6 the second class, 1.6 to 2.0 the third and the last class is 4.0 liter and the higher.

　　In accordance with the adjustment, the Vehicle and Ship Tax of cars with a displacement of 1.0 liter and below remains the same. However, from the 2nd grade, the rules are all adjusted by a large extend. For instance, within the 1.0 to 1.6 class the minimum tax is 360 Yuan while the maximum can reach 1080 Yuan.

　　The source told the Guangzhou Daily cars with a displacement of 2.0 liters start from 900 Yuan, while within the last class, which the large displacement luxury cars belong to, the threshold will exceed 3500 Yuan, and the highest may reach 10,000 Yuan.

　　Firstly, the new adjustment aims to respond to the desire of auto enterprises to develop low-emission vehicles.

　　Due to the uniform standard for all types of cars, the auto industry has long called for adjustments to reflect the direction to encourage energy-saving and carbon emission reduction, otherwise the low-emission vehicles and large displacement vehicles could not show their competitive advantages. Zeng Qinghong, deputy of the national people's congress and general manager of Guangzhou Automobile Group, expressed in the future increase efforts to encourage small cars through various ways such as promoting Vehicle and Ship Tax, consumption tax, as well as fuel tax.

　　Secondly, the burden of some car owners will be heavier.

　　According to the calculations of the reporter, in the range of 1.6 to 2.0 liters, referring to the top limit, the tax will be more than doubled compared to the current level. What is more, those who drive large displacement cars such BMW, Mercedes and Porsche, their taxes may increase to a few thousands Yuan or ten thousand dollars from the present a few hundreds.

　　Thirdly, the adjustments can be guidance to the automobile production and sales.

　　Meanwhile, the above source said that the auto enterprises are generally in favor of the adjustment program which can lead the automakers to produce more environment-friendly vehicles. But he also suggested that as cars with a displacement of 1.6 to 2.0 liters are the mainstream city-use models, the relevant authorities should increase taxes more stably and give some favorable terms to energy-saving and new energy vehicles in order not to impose too heavy burden on the car owners.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100518/n272179211.shtml