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For some time in the US, cars that can’t achieve a certain level of have what’s called a gas guzzler tax. It’s a somewhat reasonable tax if you want people to think green. However, a small tax is a small price to pay when you’re dropping $100,000+ for a brand new Mercedes-Benz CL63 or a $250,000 Ferrari <insert fast car here>. For those countries who have yet to mobilize via cars like the USA (China for example), the government is able to impose slightly more draconian taxes without backlash from the general population. Though I can’t say I agree with the government dictating what people’s behavior should be, it’s a more than effective method to take the “green” road. Here’s an example of some of the “tax reform” levels Chinese car buyers will see:

Engines smaller or equal to 1.0l - 1%

Engines over 1.0l but less than 2.0l - 5%

Engines over 2.2l but less than 3.0l - 9%

Engines over 3.0l but less than 4.0l - 25%

Engines over 4.0l - 40% 

While I applaud the Chinese for good intentions, you know what they say about good intentions. What about cars like the Chevy Corvette that gets mileage as good as any V6 sedan out there? What about engines that are turbo or supercharged? There is no final formula for the perfect way to tax cars. So, B+ for creative thinking and “good intentions”. F for execution. I just hope that American creativity and entrepreneurial spirt will yield a more reasonable solution to incentivizing small, efficient cars.

Source: China Car Times