China Considers A "Gas Guzzler" Tax

China the fastest growing market for automobiles and recently the fastest growing market for large vehicles like SUV's is considering a tax on the most fuel inefficient vehicles. China is on pace to surpass even the US in greenhouse gas emissions and is finaly looking at steps to curb the growth of pollution there.

www.cnsnews.com...\ForeignBureaus\archive\200506\FOR20050628b.html

Energy-hungry China, the world's fastest-growing vehicle market, is considering slapping new taxes on large automobiles, linking tax levels with exhaust emissions.

The official China Daily said the government was mulling a proposal from the cabinet's development and research center, which could push taxes to 15-20 percent for autos with a three-liter or larger engine capacity.

"The government will levy no tax if consumers buy lower-level or zero emission vehicles," the paper quoted center representative Feng Fei as saying.

"Those who buy cars with higher emission will be taxed more heavily," he said, adding that the aim was to encourage people to buy vehicles that use less gas and pollute less.

Current vehicle taxes range from three to eight percent.

The center predicted that cars in China would in five years' time consume about 43 percent of the country's projected total oil demand, and that the figure would climb to 57 percent by 2020.

"In the future urban pollution will mainly be generated by automobiles, unless we are able to effectively control exhaust emissions," Feng said.

It's nice to see that China is considering such a move. The only way alternative fueled and low emmision vehicles are going to take off globaly is if the price incentive is there. All nations should consider higher tax levies on high emission automobiles. The U.S. and Europe have done it but could take it much further.


[edit on 6/28/2005 by looking4truth]

.
While interrelated, emmissions and fuel efficiency aren't precisely the same thing.

Using less gas by encouraging people to use more efficient vehicles is certainly something i applaud. It will help forestall the Impending Peak Oil.

Efficient use of fuel means it all gets burned to CO2 and H2O, i think, and does'nt leave partially burned hydrocarbons and carbon monoxide. But CO2 is still a greenhouse gas.

If you want to reduce the total amount of greenhouse gasses I think you have to reduce the amount of metal/weight you are hauling around with you.

With an ever expanding market for cars, China is going to have to reduce average vehicle weight just to stay even on the greenhouse gas output. It will have to improve fuel efficiency as well just to stay even on how much petroleum it consumes.

I love watching China, it is so fernetic it is hypnotic just to watch.
They are running as fast as they can just to keep up.
I wish the US would get off the sidelines [its backside] and join the race.
.

Originally posted by slank
I love watching China, it is so fernetic it is hypnotic just to watch.
They are running as fast as they can just to keep up.
I wish the US would get off the sidelines [its backside] and join the race.
.

I couldn't agree more. They have an advantage for fast growth in that they still have the low wages and are not organized labor unions. But that is also a bad thing for the people that live on the crap wages. The US has got to pick it's self up, yawn and stretch, and get back to work.

The tax China is talking about is triple for a large SUV than for a small car. They have got to do something, they still burn coal bricks in thier homes for heating and cooking and the need to use oil for heating instead is growing. Between the frantic growth in energy usage and the blow up of the auto industry they are headed for a big problem, economicly and environmentaly.