Beijing might raise its vehicle and shipping tax despite complaints from residents that the proposed taxes are too high.

The Beijing municipal legislative affairs office confirmed yesterday that it has adjusted the draft rules of its vehicle and shipping tax after public consultation.

"We will submit it to the Beijing municipal government for a final decision," a senior official at the office, said.

The implementation of the rules will be announced in September or October pending approval by the Beijing municipal government, the official said.

This new draft cuts registration taxes for motorcycles and minibuses by 60 yuan ($7.94), taxes for all other vehicles and ships will likely be raised.

According to the new rules issued on June 26, taxes for private buses will be raised between 360 yuan and 600 yuan a year, double the previous level of between 200 yuan and 300 yuan. This immediately raised concern.

About 7,000 people had posted their comments and suggestions on the website of the Beijing municipal legislative affairs office by Monday, the deadline for public consultation.

Most said the new taxes were too high and the regulations were not specific enough.

According to the draft, vehicles that carry nine or fewer passengers will be levied 480 yuan a year. It was formerly only 200 yuan.

Xu Yuanfeng, an expert on public finance, spoke highly of the new taxes.

"It will help implement the State's policies on energy saving and environmental protection," Xu said.

The rapidly increasing number of vehicles, and carbon emissions, are putting heavy pressure on China's energy supply and damaging the environment, he said.

Beijing had about 3 million vehicles at the end of May, and the figure is likely to be 3.3 million by August, according to the Beijing traffic management bureau.

Under the new draft, only buses used for public transport will enjoy tax exemption.

(China Daily 07/18/2007 page5)