Beijing refuses to confirm rumors of new automobile emission tax

Reports have been appearing across the Chinese media thatBeijingwill begin testing a new automobile emission tax, which if implemented would push per liter prices of gasoline in the city to ten yuan ($1.62). However, according to a report appearing in the Science and Technology Daily today, an official from the Beijing Municipal Bureau of Environmental Protection stated that the department had made no such announcement.

Rumors thatBeijingis preparing to initiate an emission tax have appeared several times. Last May, theBeijinggovernment put out a paper summarizing the various measures it is considering taking to tackle air pollution in the city over the next eight years. In addition to restricting which days vehicles can be driven and outlawing the use of antiquated automobiles that don't adhere to modern emission standards, the paper also touched upon the possibility of implementing emission-based taxes. Various reports in the media speculated that these taxes would be implemented by the end of this year as an additional 2 yuan ($.32) charge to every liter of gasoline bought at the city's gas stations.

In other news, when asked about the issue, an official from the Shanghai Municipal Bureau of Environmental Protection flat out denied that that city was considering introducing such a tax. The official said that the city was committed to implementing the 'Shanghai V' fuel standard, similar to the Euro 4 standard used inEurope. The new standard, which would aim to improve the quality of fuel used in the city, is scheduled to be officially announced later this month and start coming into effect later this year. Representatives from Sinopec, one of the country's major oil and gas companies, stated that will begin testing offering 'Shanghai V' quality gasoline this September and diesel fuel next year.

Figures from across the automotive industry are split on the effectiveness of emission-based taxes. Luo Lei, deputy head of the China Automobile Dealers Association, pointed out that the taxes may help accelerate the use of new energy vehicles and aid major cities in dealing with their congestion and pollution issues.

On the other side of the spectrum, China Passenger Car Association Secretary General Rao Da worries that the taxes would be of little use since they would only target privately-owned vehicles, which are generally driven less than government and other official-use vehicles.