We’re not sure what exactly is a ‘large engined’ car in China. Many people have smaller cars, i.e. 1.6 or less, then the vast majority of business users must be 2.0 and higher. In a land where Humvees (CCT spotted 3 Hummers on the way to work this morning, including a H1) Navigators, and other full size SUV’s are becoming common place, perhaps the limit of ‘large engines’ will be raised to 2.5 or even 3.0l.
Reuters explains:
China’s cabinet agreed in principle to raise the consumption tax on cars with large engines to help save energy, the government said on Wednesday.
The State Council did not provide details on when or by how much it would increase the tax, but it said that such a move was needed to contribute to the country’s energy efficiency drive.
“With the acceleration of industrialisation and urbanisation, the tight energy supply is becoming one of the major obstacles hampering our economic and social development,” the cabinet said in a statement on the central government’s website (www.gov.cn).
It added that energy-efficient automobiles would be given preferential tax treatment, and said that it would look to make sure that polluting old automobiles are taken off the streets and that public transportation will be ramped up.
The cabinet also said efficiency should be emphasised more broadly in the power sector.
“Closing fuel-oil fired power plants must be made the main point of shutting small power plants. The level of support for economising on and replacing crude oil projects must be strengthened,” the report said.
Beijing, trying to make its economic growth greener, has set a goal of reducing energy intensity by 20 percent between 2006 and 2010.
But China heavily subsidies fuel, meaning there is little incentive for status-conscious consumers to buy efficient car models rather than gas-guzzling sedans.The cabinet also passed a draft order on energy efficiency in buildings that will encourage the use of new technologies and materials in the construction of homes and offices.
It too contained little detail and will need to be followed up with specific implementing rules.
the new consumption tax for cars with engines bigger then 3.0 L allready applies for all cars imported after juli 1st to china.
the new consumption tax for cars with more then 3.0 L but less then 4.0 rose from 15% to 18% and for cars with enginer above 4.0L the tax went up from 20% to 24% now.
does the consumption tax apply only to new car sales — or does it include used car sales as well?
the consumption tax only need to be paid on import of a car to china.
there is no tax need to be payed used cars that are allready in china.
If you import a used car from another country the consumption tax need to be payed on import.
Importing a used car from another country the consumption tax need to be payed on import.