Gasgoo.com (Shanghai February 25) - Chen Jianguo, deputy head of the industrial coordination department at the National Development & Reform Commission (NDRC), said that the government should use taxation to solve traffic consumption problems caused by rising automobile consumption, jjckb.cn reported today. The statement was made during the NDRC-held China Auto Consumption Forum held in Beijing yesterday. Mr. Chen (pictured) said that simple methods such as purchase restriction were not only insufficient to deal with the problem, but could harm consumers and the industry overall.
Ever since Beijing's implementation of purchase restriction policies, other major cities have voiced their support for similar measures. Mr. Chen responded to such statements by saying that developing countries such as Shanghai and Singapore should take caution, and that while haphazardly restricting consumption can show quick results, it has the potential to severely damage the economy in the long-term.
During a media press conference, Mr. Chen said that the key in properly drawing in and keeping out automobile consumers lied in sensible tax manipulation. Mr. Chen explained that automobile purchases have the following three aspects: purchasing automobiles, possessing them and using them. To ensure an economic-environmental win-win, he advocates the decrease of purchase fees and the increase of taxes incurred during vehicle possession and usage.
