China to impose fuel tax before 2010 – official

BEIJING (XFN-ASIA) – The Chinese government will impose a long-speculated fuel tax before 2010, said Yang Fuqiang, chief representative of the Beijing office of the China Sustainable Energy Program.

The implementation of the tax will come quickly after it is announced, Yang added, speaking on the sidelines of an event in Beijing.

China’s central government has said previously that it plans to move ahead with the measure this year, but industry sources have expressed doubt that the country will implement the tax.

Analysts have said that the tax is a crucial element in efforts to curb China’s environmental pollution and increase economic efficiency.

Yang said that he believes China will be able to reach its goal under the 11th Five-Year plan to reduce energy intensity by 20 pct by 2010, despite falling short of the four pct taget last year.

‘China will meet these standards,’ Yang, adding that 2007 and 2008 are key years.

But he added he believes the failure next year to meet the targeted reduction in energy consumed per unit of GDP will indicate the failure of the attempt to meet the five-year plan goal.

sean.mangieri@xinhuafinance.com