The China State Council has passed the second draft regulations of China’s Vehicle and Vessel Tax Law to maintain support for new energy vehicles.
According to evtimes.cn, the regulation states that vehicle and vessel taxes can be reduced or exempted for vehicles that conserve energy or use new energy. Taxes on traditional vehicles with engine sizes between 1.6-litre and three-litre can be lowered.
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“The regulation reflects that the government is hoping to guide consumers to buying small engine and low energy consumption vehicles,” said Bai Jingming, deputy director of the Institute of Fiscal Science.
The law will take effect from 1 January 2012.
