The deputy director of the China Automotive
Technology and Research Center (CATARC), at
the 4th International Clean Vehicle Technology Conference and
Exhibition in Beijing yesterday, welcomed increased taxes for
large-engine cars as a way to help reduce emissions.
"Consumption tax reform cannot have an immediate
impact on the clean-vehicle market, but at least it is an
inspiration for car makers," said Zhang Jinhua.
"Substantial support from the government is
needed,” he said. “Without it, the price for hybrid vehicles will
remain high and the market can never grow."
The current tax structure, which has three
categories for different engine sizes, is likely to change to have
five, said Zhang.
For instance, cars with engine displacement of 1
liter or less will pay 1 percent instead of the current 3 percent
while vehicles with 4 liter or more engines would pay between 20
and 25 percent instead of the current 8 percent.
Earlier this month, Feng Fei, director of the State
Council Development Research Center’s industry department, proposed
that taxes be levied on buyers rather than auto producers as is
done now to "encourage them to consider buying economy vehicles
with lower emissions."
Prius, jointly manufactured by Japan-based Toyota
and the China FAW Group Corporation, will be the first hybrid car
available on the Chinese market.
Zhu Yanfeng, president of the joint venture,
announced on Wednesday that Prius would be available from
mid-December for 250,000 yuan (US$31,000), a price tag
substantially higher than the average.
The conference and exhibition, held annually in the
capital, opened on Wednesday and is set to close tomorrow. Its
organizers said it aims to provide a stimulating atmosphere for
cooperation, collaboration and trade by bringing together
enterprises and leaders from a wide array of professional
backgrounds and areas of expertise.
(China Daily November 25, 2005)