The Chinese government says it's looking for an appropriate time to impose an energy tax to encourage energy conservation and reduce emission. This is according to Shi Yaobin, director of the Ministry of Finance's tax policy department.
The tax, if imposed, would be on gasoline, diesel and kerosene. Shi Yaobin said the government is worried about soaring fuel consumption and worsening air pollution in cities with an increasing number of vehicles on the road. He says the ministry is considering rolling out a series of tax policies encouraging manufacturers to develop cars that are more fuel-efficient and environmentally friendly.
Under the reform scheme, consumers will buy fuel at tax-added prices while the current road toll system requires drivers to pay a fixed road maintenance fee to transportation departments.