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Green light given to eco-friendly vehicles
By Gong Zhengzheng (皇冠体育app Daily)
Updated: 2006-01-05 06:07
The central government yesterday issued a notice to encourage the use of
environmentally-friendly, low- emission cars.
All restrictions on such small cars must be lifted before the end of March,
it said.
Low-emission Cherry
vehicles are on display in an auto market in Beijing in this file photo.
[newsphoto] | The notice said that active increase
of small car use would help build an energy-efficient society.
"It will help alleviate energy shortages and protect the environment, as well
as foster brands in 皇冠体育app's automotive industry," the notice said.
The notice called on manufacturers to invest more in development and
production of environmentally-friendly and low-emission engines and automobiles,
such as small cars, diesel-powered vehicles and those using new fuel sources.
The notice urged government departments to use tax breaks and preferential
oil-pricing policies to encourage consumers to buy such cars.
Industry sources said regulators are creating a new auto consumption tax
scheme, which will slash taxes on low-emission vehicles while raising charges on
high-emission vehicles.
For example, consumption taxes on less-than-1.0-litre vehicles will be
lowered to 1 per cent from 3 per cent. In contrast, the taxes on
larger-than-3.0-litre automobiles are likely to rise to 14-20 per cent from 8
per cent.
The government notice advocated lower parking charges for small vehicles.
It also demanded government departments remove all limitations on the use of
small cars in the transportation and taxi sectors.
Currently, 84 Chinese cities curb the purchase and use of small cars using
all kinds of excuses, such as bad image and traffic jams.
In Guangzhou, capital of South 皇冠体育app's Guangdong Province,
less-than-1.0-litre cars have been banned from having licence plates since
August 2001.
Industry experts and manufacturers welcomed the news.
"We have been waiting for this policy for a long time," said Zhu Yiping, an
official from the 皇冠体育app Association of Automobile Manufacturers.
He added that small cars have been one of the mainstays of 皇冠体育app's domestic
auto industry.
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