Economy

Markets

Industries

Insights

Reports

Events

Pollution tax on cars not justified

(China Daily)
Updated: 2009-09-11 07:46

Before levying a pollution management tax on vehicles, the authorities should ease the existing taxes and fees, which already are a heavy burden on vehicle owners, says an article in China Business View. Excerpt:

The joint plan of the Ministry of Environment Protection, Ministry of Finance and the State Taxation Administration to impose a pollution management tax on vehicle owners has sparked a debate.

Since vehicles are the main emitters of greenhouse gases in cities they should be made to pay a pollution tax in order to help the government mitigate pollution. But plenty of taxes have already been imposed on vehicles, and a pollution management tax would increase the financial burden of their owners.

Related readings:  Pollution tax will not be levied  China to levy pollution tax on vehicles  Beijing tightens vehicle exhaust controls  Official urges early exit of high-emission vehicles

In Western countries, vehicle owners generally pay 5 to 6 types of taxes, but in China, they pay more than 20 kinds of taxes and fees.

Apart from the fuel tax, Chinese people also pay a variety of other taxes - for example, tax for using vehicles and vessels, tolls for using roads and bridges, and administration, parking and insurance fees.

Some local governments have even imposed vehicle license fees and new vehicle inspection fees.

It seems that authorities at every level want to get a slice of the vehicle-tax-and-fee cake.

There doesn't seem to be any justification in levying a pollution management tax on vehicle owners because they are paying enough in taxes and fees. Why can't the government spend part of the funds collected as vehicle taxation on pollution management? Before imposing a pollution management tax, the authorities should regulate the existing arbitrary charges on vehicle owners.