Tax maybe cut for small cars

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.

    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 yuan (US$45) and 540 yuan a year from the present 360-660 yuan, while the tax on cars with engine capacity between 1.6 and 2.0 liters would be lowered to between 360 yuan and 660 yuan from the present 660-960 yuan, according to the draft. Taxes for cars with engine capacity below 1.0 liter would remain unchanged at between 60 and 360 yuan.

    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.

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