Beijing to raise fuel tax, China Car Times unhappy
Its a slow news day here in China for two reasons
1. Next week is a national holiday – we will be celebrating the day that Mao Zedong declared the Peoples Republic into existance. Well its not quite a holiday yet, workers all over the country will be working saturday and sunday so they can have monday and tuesday off. Technically it is a 1 day holiday as workers will also have to work the following weekend (Oct 13th and 14th) to make up for the time they missed, but we will take 9 days holiday just to be smug. Everyone is excited about their fake week long holiday, so not much news is getting written today.
2. The central government in Beijing have finally decided to collect fuel tax, this has sent a collective shock down the backs of 1.3 billion people who really dont want to pay tax. Beijing currently doesnt collect tax on fuel and the cost of fuel at the pump is very cheap when compared to other countries around the world (4.79rmb for 92# and 5rmb for 97#).
The tax is essentially good news for those who cover a lot of road per year as the government plans to do away with road tax, toll bridges, highway maintance fees etc. Currently road tax is paid by the weight of your car, if you have a larger car you pay more, you have a smaller car you pay less, this fee is around 100rmb per 1000kg of car weight. The government is saying this is a fairer system as if you drive more, you pay more tax on your fuel, you drive less, you pay less. However, long distance driving costs soon add up, especially when you use certain roads that have toll bridges with tolls ranging from a few RMB upto a higher amount (we honestly dont know how high, 50rmb was the most expensive toll we’ve been to) so under the new system if you drive a lot, you wont get hammered with toll bridge and highway costs but you will get a fuel tax.
Beijings idea is that car companies will be pushed into developing other alternative fuel cars whilst the driver gets pinched in the pocket and has to take public transport. Clearly the Mandarins in Beijing have not taken public transport in China in the last decade and the last place I’d like to be on a Monday morning is on a packed diesel fume spewing bus with my nose pushed firmly in someones arm pit.
On the upside, the cost of the fuel tax will hopefully knock a few drivers off the road meaning more room to drive FAST!
China Car Times is no economist, but we think the old adage ‘If its not broken, Dont fix it’ is clearly applicable here. Beijing, this is one of your silliest ideas yet. Look forward to mass strikes by taxi drivers in March next year when the fuel tax comes into play.
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1. ^#^$*$((((_)(#_#(_(@(@(. I am one of the poor souls who has to work through the weekend….. At least I get a month off in summer and a few more weeks in winter
2. I think it’s a good idea for the sole purpose that it means everyone will have to pay the tax no matter what. This won’t just affect motorists but almost every industry that uses fuel to conduct business from motorcycle taxis to heavy construction equipment. Having the fuel companies collect it and then pay the govt will make it easier to control (hopefully) and as long as they don’t make the tax too high (say, under 5 mao/liter and thats being generous) then it won’t be as noticeable than the tolls.
This could also free up traffic police to actually enforce laws instead of revenue collecting for the tax department from vehicles without the right tax stickers. As the automotive industry is booming and most of those consumers probably paid cash for their vehicle then they should hopefully be able to burden the cost. There is a lot of money floating around that was obtained from dubious means so its only right that China’s citizens give a little back. Lets face it, most of the locals HATE to pay tax so this way it will keep everyone honest (sort of).
The best thing I can think of for this is that in theory NO ONE should be immune from the fuel tax… and that includes a large number of special cars with white license plates who would probably have to look in the dictionary so they could laugh at the meaning of the word tax…
MAYBE it’s a good event, but for poor wont afford a car day by day, but rich doesn’t care still…
The fuel tax is the very best way to collect taxes – 3 cheers for Beijing for finally taking this route!!!
The gov is going to need tax money to fix roads and bridges, so why not tax from fuel? The more you drive, the heavier the vehicle you use, the crazier you use your vehicles – which all translates to more road usage and wear and tear, you then simply pay more through the amount of gas you use. It’s by far the fairest system.
It also encourages conservation. People will drive less and drive slower. People will buy more fuel efficient cars and properly maintain their cars. It’s a win, win, win situation.
And if this fuel tax replaces the tolls on the highway and bridges, think about the efficiency! Tolls are the most stupid idea ever invented. What a waste of human resources to have someone sit there and collect money from motorists – not to mention a big waste of time and gas for drivers to stop and wait and wait and wait and pay (and realize you didn’t have enough change). Good riddence.
I am really happy with this – the gas tax thing and not the holiday (I get one day off).
1. The company pays for my gas, but not my leasure tolls, so it’s less money out of my pocket.
2. The big trucks will move off the secondary roads onto the highways as they won’t be attempting to save a few bucks.
3. Buses will go directly to their destination rather than on and off the highways in a dance to reduce the total toll they will pay.
4. Everyone will pay. Do you know anything in China were everyone pays? Special this, connection that, retired this, ex- that. So many people have a line or a friend or a little plastic covered book that will exempt them from whatever.
5. I won’t have to stop at a toll booth and have the police come hoping to give me a ticket because my car is not suitably equipped with the mandatory emergency orange triangle in my trunk (true story)!!!
This makes me happy, even if I did have to pay the tax.
Slade,
Good point – every citizen will have to pay, I didnt think about that aspect.
Shame the military have their own special filling stations. Guess Ill have to get a special army card
Did you really get a ticket for that? I dont have that orange triangle (or do I?) in my car.
I said true story didn’t I? Revenue generation to the max.
Just like speed camera tickets for Y200 for 7kpm over. Several in the office got that.
working on 13th and 14th? Where did you get this info?
Its the usual deal from what I remember, the 1st to the 7th off and work the next weekend to make up the ‘lost’ time.
The deal this time is that you work to 29th and 30th and that replaces the “extra days” you get “off” on the 4th and 5th after your “three day holiday”. Add another weekend that you don’t work, the 6th and 7th and voila, you have a seven day holiday.
I have tried to explain that it is in fact just a three day holiday, and those that will finally admit it still gush, Yeah, but we still get seven days off in a row. We don’t care that we had to work seven days in a row to get seven days off in a row. Longer holidays are better.
As for me, work 29th and 30th and have 1st, 2nd and 3rd off, so a one day holiday…but I work for a capitalist, not the government. Should I
or 
of :p ?