I wish that the Government of the United States had the political will and mechanism in place to affect such a powerful paradigm shift within our own country. Kudos to those in charge in the Peoples' Republic of China!

Seems to me that the US could use a similar structure like this to replace the current rules. I'd put the 2 - 3L class up to 12%.

Very good timely move by China.

Many countries in Europe already have similar variable rates.

A yearly levy/registration fee and/or purchase tax based on average fuel consumption over 4 or 5L/100 Km would also help. Something like $100 per additional 1L/100 Km or $10 per additional 0.1L/100 Km for yearly registration could be more appropriate. The variable purchase tax could be 10 times the yearly registration fee. Both would promote the sale of smaller more efficient vehicles.

Of course, most American big car lovers would call variable taxes and/or variable registration fees unconstitutional. Many would go to court over it.

It may be like the Metric system, most countries will do it but not USA.

Good intention but I expect that automakers will start introducing turbo-charged engines to get around this.

I refer to gasoline engines.
Don't think that there is a significant difference in consumption and power between a 1.8 L turbo and say 2.4 L non-turbo engine, on average.
Inability to define equal playing field for turbo engines led Formula One to ban them.
There was/is a Subaru 2.0 L turbo engine stronger (and of course thirstier) than many 3+ L engines.
Aftermarket turbo upgrades can become common for some models.

Taxing based on consumption (verified on some standardized tests) would be a much better approach. Better than based on max power output, because of hybrids.

We already have a standardized test - EPA mileage.
We already tax on the sales or market value for registration so this is no big deal. And provides more benefits than just revenue.
Also, it is a crime (or should be) to live more than 5 miles from work.
And while we are at it, we need to limit family size, but in the American way - allow the family to choose which member to exterminate.
And the control of sedition is long overdue.
Make me First Party Chairman and I will cure all our ills, I guarantee it.

Just for reference:

Here are the rates for Ireland

CO2 Emissions (CO2g/km) VRT Rate
0 - 120g 14%
> 120g/km up to and including 140g/km 16%
> 140g/km up to and including 155g/km 20%
> 155g/km up to and including 170g/km 24%
> 170g/km up to and including 190g/km 28%
> 190g/km up to and including 225g/km 32%
> 225g/km 36%

+ 21% VAT on top of it all

This has dropped the mean CO2 level of cars purchased in the year it was introduced by approx 20 gms/Km, compared to the old system, when the rates were based on engine capacity.

It is like a prepaid CO2 tax.

sorry, that was me.

So ToppaTom,

the only two possible political systems are free market capitalism or totalitarian communism. If only the world were so black and white.

Perhaps gasoline pumps could be built that detected the car and its efficiency and the fuel tax could be increased for low efficiency vehicles. Also the car's computer could be checked to charge extra for low efficiency driving. ..HG..

This is a smart policy that will ultimately help economic success.

Very few things are black and white.
I believe a CAFE plus an MPG tax is warrented. Our leaders have failed miserably to avoid the energy/cash flow crisis. A higher CAFE and an "low MPG" tax are probably overdue. But it is not so simple; I hope most of us care that this might(help) kill the american auto industry.

I am just not too impressed with China's ability to mandate public action. Their mixture of totalitarianism and capitalism is powerful. But is blind obedience to the government to be admired?
They seem to be able to harness nationaism at will. Much better than we ever did.

Get the tar and feathers ready for for me, the heritic is here.

If you want people to use less gas the only way that truly works is a gas tax. The reason government in the US is hesitant to do this is because the population here will revolt. There is this little thing called freedom. Something not in China. A country who not long ago decided to plow over their own people with tanks, just to wanted a bit of it!

Cafe, engine displacement taxes are nothing more than bad policy.

Besides we need to replace oil with something else, something conservation will not do.

Initially, electrified light vehicles may cost 10% to 25% more than their ICE equivalent.

One of the best way to convince potential buyers to lean towards electrified vehicles (HEV, PHEV or BEV) would be to reduce the cost differential to zero.

This could be done on purchase day (or progressively over a 5 to 10 year period) with a variable fuel consumption tax on gas guzzlers and a proportional negative purchase tax on HEVs, PHEVs and BEVs.