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Beijing's measures for implementing the Provisional Regulations of the People's Republic of China for Tax on Vehicles and Ships have been approved by the municipality's standing conference. The cluster of measures will be published and enter into force very soon.

Under the latest measures, Beijing's annual tax on medium- and small-sized buses will be raised to 480 yuan (US$63.4) from 200 yuan (US$26.4).

Tax on large buses increased the most, doubling to 600 yuan (US$79.3). However, considering that tri-wheeled and low-speed vehicles are owned mainly by farmers, the yearly tax standard remained unchanged at 60 yuan. Furthermore, the measuring unit was changed to dead weight from net weight, an attempt to relieve farmers' burdens.

The truck tax went up to 96 yuan per ton in dead weight from 60 yuan per ton of net weight.

Zhou Jidong, the director of the Beijing municipal legislative affairs office, suggested that the state provisional regulations were only a rough outline of taxes on vehicles for reference. For example, the large bus tax could range from 480 yuan to 600 yuan, the medium bus tax from 420 yuan to 660 yuan, and the small tax from 360 yuan to 660 yuan.

Such a wide range promised great flexibility for local governments to tax vehicles in accordance to their own unique situations. Tianjin, Chongqing, as well as Hebei Province had worked out their own methods, while Beijing just learned from others, said Zhou. Generally speaking, though, the current average tax standard doubled the former one.

Military vehicles and tractors are exempted from tax, according the new regulations. Beijing's government also exempted taxes on the buses used for public transit in both urban and rural areas of the city.

Although Beijing is not a coastal city, there were 337 registered and licensed ships at the end of March, totaling over 4,000 tons in net weight. Together with more than three million vehicles, Beijing assumed overall taxes of one billion yuan (US$1.3 billion) from vehicles and ships this year.

Taxis will not be regarded as public transit vehicles and still will not enjoy the tax exemption policy as city buses in Beijing

In addition, the vehicles owned by governments or parties, public institutes, and people's communities in Beijing will have no exception or privilege in paying taxes.