Fuel tax to depend on oil prices: official

Updated: 2006-03-06 09:55

The government is still studying plans for a fuel tax, but conditions are not right yet for rolling out such a measure, Xie Xuren, director of the State Administration of Taxation, said yesterday.

Oil prices are still too high and whether the fuel tax will be rolled out this year will mainly depend on the trend in oil prices, Xie told reporters on the sidelines of the annual session of the National People's Congress (NPC).

He said the timetable of the fuel tax depends on many conditions, some of which China has not met.

He said rolling out the measure would also require coordination among government agencies that would have an interest in the matter.

China has been considering plans to introduce higher automobile taxes to push buyers into choosing vehicles with smaller engines, in line with efforts to improve energy conservation and fuel efficiency.

(Source: Shenzhen Daily/Agencies)