China says fuel tax likely in 2007

China has said that it will move ahead with a transport fuel tax this year, but industry analysts said the long delayed measure is still so controversial that its passage is hardly assured. The fuel tax is strongly opposed by the National Peoples Congress because of the effects it might cause to farmers. “The Ministry of Finance is definitely voicing strong support for the introduction of the fuel tax,” said Han Xiaoping, an energy consultant with Falcon Power. Beijing has promoted the tax as a way to encourage efficiency as the nation’s demand for energy soars. It also sees the tax as a way to control pollution from vehicle emissions while it allows the central government to diversify its sources of revenues. (January 9, 2007)