China releases plans for fuel tax increases

BEIJING - China's government has proposed a reform of the fuel tax that would raise tariffs for gasoline and diesel while eliminating other fees for drivers.

The plan, announced Friday and scheduled to take effect on Jan. 1, would raise tax on gasoline to 1 yuan (14 cents) from the current rate of 0.2 yuan (3 cents). The tax on diesel would rise from 0.1 yuan (2 cents) per liter to 0.8 yuan (11 cents).

Despite the increase, existing fuel prices would not rise, the government notice said.

Under the plan, six categories of annual fees levied on drivers would also be eliminated.

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