China adopts car tax law

BEIJING, Feb 26 (Xinhua): China's top legislature voted Friday to adopt a law for vehicle and vessel taxation, which aims to encourage the use of smaller engines in vehicles and vessels to reduce pollution and oil dependence. The law will go into effect on January 1, 2012. China is currently the world's largest auto manufacturer as well as the largest auto market. Recent statistics show that China has 199 million motor vehicles on the road. The law intends to tax cars according to engine size. Under the old regulations, the same levy was charged for all motor vehicles, regardless of engine capacities. The annual taxes on vehicles and vessels range from 60 yuan to 5400 yuan, according to engine size as stipulated by the new law. Under the old regulations, the tax ranged from 360 yuan to 660 yuan.