Buyers of big cars will fork out more taxes and those who opt for smaller models will pay less under a revised auto consumption tax likely to come into force next year.

China Daily quoted Zhang Jinhua, deputy director of the China Automotive Technology and Research Centre, as saying Thursday at the Fourth International Clean Vehicle Technology Conference and Exhibition.

The current tax structure, which has three slabs for different engine sizes, is likely to have five. Vehicles with 4 litre or higher engines would pay between 20-25 percent instead of the current 8 percent, while those with engine displacement of 1 litre or less will pay 1 percent instead of the current 3 percent.

Industry experts see it as a government move to increase fuel efficiency and reduce emissions.

"The consumption tax reform cannot have an immediate impact on the clean-vehicle market. But at least, it is an inspiration for car makers," the newspaper quoted Zhang as saying.

Zhang also pointed out that substantial support from the government is needed if emissions were to be cut significantly, because the price for hybrid vehicles will remain high without government support.

Prius, jointly manufactured by Japan-based Toyota and the China FAW Group Corporation, will be the first hybrid car available in the Chinese market.

Zhu Yanfeng, president of the joint venture, announced on Wednesday that Prius would be available from mid-December for 250,000 yuan (31,000 US dollars) a price tag substantially higher than the average.

Feng Fei, director of the industry department of the State Council Development Research Centre, also proposed early this month that tax be levied on buyers rather than on auto producers as is done now, so as to encourage sales with economy vehicles with lower emissions.

Source: Xinhua