China mulls possibility of levying emission tax by 2010

The Ministry of Finance, State Administration of Taxation and State Environmental Protection Administration (SEPA) have started a feasibility study on the taxation, said Yang Chaofei, at the Forum on China Energy Sustainable Development last Sunday.

"The tax could be put in place by the end of the 11th five-year Plan (2006-2010),” said Yang, referring to the plan ending in 2011. "SEPA will provide cooperation on the technical field such as setting the standards and measurement of emissions," Yang added.

By mid-2007, China has 150 million vehicles in use, 25% of the total in the world, and the figure is even increasing fast. Figures show that 85% of CO, 75% of NO2 and 50% of the hydrocarbon in urban areas are caused by automotive exhaust. "Vehicle exhaust is a major contributor to urban air pollution," said Zhu Tong, professor on the Environment Science and Engineering of Beijing University.