China to exempts "green" vehicles from taxation

Updated: 2011-06-16 11:12


Twitter Facebook Myspace Yahoo! Linkedin Mixx

BEIJING -- The State Council, or China's cabinet, on Wednesday began soliciting public opinions on a draft regulation for the implementation of the Vehicle and Vessel Tax Law, which will exempt electric cars, fuel-cell vehicles and hybrid vehicles from taxation.

The draft regulation was created in line with the Vehicle and Vessel Tax Law, which stipulates that "tax reductions and exemptions should be granted for vehicles and vessels that save energy or use new energy," according to a statement released on Wednesday by the Legal Affairs Office of the State Council.

Related readings:
China to exempts  'Green' auto movement facing an uphill climb
China to exempts  China's automaker BYD presents green vision in US
China to exempts  Dongfeng drives new energy strategy 
China to exempts  JAC joins rush toward 'green' vehicles

Taxes on other hybrid vehicles will be halved, the regulation said.

Provincial-level governments should create their own taxation standards in accordance with vehicles' engine capacities, as well as the total number of vehicles in the area and local tax laws, the regulation said.

According to the draft regulation, taxes for passenger buses will be split into two categories. One category will cover buses that can carry 20 or more people, while the second category will cover buses that can carry between 10 and 19 people.

The draft regulation also specified four categories for yacht taxes, with greater taxes for large-sized yachts.

According to the draft, local tax authorities will be responsible for collecting vehicle and vessel taxes.p The regulation will take effect on January 1, 2012, replacing the current regulation on vehicle and vessel taxes, which took effect in 2007.

Opinions on the draft regulation can be submitted via mail, email or by logging on to until July 14.



China is taking bigger strides to become a force in fashion.

Lasting Spirit
Running with the Beijingers
A twist in the tale

European Edition


My China story

Foreign readers are invited to share your China stories.

Mom’s the word

Italian expat struggles with learning English and experiences the joys of motherhood again.

Lenovo's challenge

Computer maker takes on iconic brand apple with range of stylish, popular products

Vice-President visits Italy
Sky is the limit
Quest for green growth