China prepares to tax gas guzzlers

Alarmed by high world oil prices and sporadic shortages of gasoline and diesel fuel in big cities this summer, China’s leaders are drafting plans to impose steep taxes on cars and sport utility vehicles with gas-guzzling engines.

The taxes would add as much as 27 percent to the price of vehicles with big engines, notably sports cars and SUVs, auto industry officials and people advising the government on the plan said. At the same time, taxes may be cut slightly for models with the smallest, most efficient engines, though the details of these cuts are still under discussion, they said.

International Herald Tribune