China Environmental Law

A discussion of China’s environmental and energy laws, regulations, and policies

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Big Cars Face Big Tax: Fat Cats Unfazed

August 14th, 2008 · 2 Comments

SUVSorry dear readers, very busy today.  Here’s the most important environmental story of the day: “Tax on big cars raised to save fuel” . 

Key points:

  • Cars with engines above 4-liter capacity: 40% tax
  • Cars with engines between 3 and 4 liters: 25% tax (up from 15%)
  • Cars with engines below 1-liter capacity: 1% tax (reduced from 3%)

This is a good move, but

The tax increase, however, is not likely to stop the rich from buying big cars because such people are not very sensitive to price changes, he [Zhong Shi, a Beijing-based industrial analyst] said.

Alas!

Tags: Uncategorized

2 responses so far ↓

  • 1 Thijs (Shenzhen) // Aug 15, 2008 at 1:25 pm

    I also fear that the rich don’t care so much about the price, but it’s a good start. I only wish they had also made the range 1-3 liter (by far the biggest category) more expensive. You should see the roads in Shenzhen now, compared to just two years ago!

  • 2 cmcelwee // Aug 21, 2008 at 11:33 am

    Thijs: Thanks for your comment and sorry for the delay in acknowledging it. I get depressed about China’s love affair with the (big) car, but feel hestitant to lecture too much as I’m afraid I’ll come off like the sanctimonious ex-smoker. Somethings gotta give, however.

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