Owners of vehicles with engine capacity below 2.0 liters would pay less vehicle tax under a draft law discussed at a meeting of the Standing Committee of China's top legislature in Beijing yesterday(Feb 23).
According to the draft law, taxes on vehicles with engines smaller than 2.0 liters which account for 87 percent of China's cars would be reduced and vehicle owners would have to submit tax certificates to qualify for a road-worthy certificate.
The tax rates for cars with engines between 1.0 and 1.6 liters would be reduced to between 300 RMB (45 USD) and 540 RMB a year from the present 360-660 RMB, while the tax on cars with engine capacity between 1.6 and 2.0 liters would be lowered to between 360 RMB and 660 RMB from the present 660-960 RMB, according to the draft. Taxes for cars with engine capacity below 1.0 liter would remain unchanged at between 60 and 360 RMB.
The draft law would also impose a yacht tax according to the length of the vessel.
The revision is aimed at standardizing taxation, and promoting environmental awareness and energy efficiency, lawmakers said. China's 199 million vehicles are now subject only to a regulation on vehicle and vessel tax that took effect in 2007.
During the session, lawmakers will also read an amendment to the Criminal Law and a new law on intangible cultural heritage protection.
