CHINESE MOTORISTS TO PAY HIGHER CONSUMPTION TAX FOR LARGER CARS

Taxes on vehicles equipped with larger-size engines will rise from 15% 25% in China on September 1 as the government seeks to slow sales of engines with 3 to 4 liters. The tax on the largest engines will increase to 40%.

Sales of imported cars increased 25% to more than 80,000 units sold during the first six months of 2008, according to the China Association of Automobile Manufacturers. The English-language newspaper China Daily reports that imports of SUVs increased by more than 91% in the first five months of 2008, and that large cars account for 42% of all auto imports.