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China Raises Consumption Taxes on Large-Displacement Cars

China adopted new consumption tax rates for automobiles on September 1,raising the rates for large-displacement cars and lowering the rates on small-dis-placement ones. The tax rate on cars with engine displacements of 3 to 4 liters hasbeen raised from 15 to 25 percent, and the rate on cars above 4 liters doubled to40 percent. The rate on cars with engine displacements of one liter or less has beenreduced from three to one percent. The new policy will help promote the produc-tion and use of small-displacement cars, cuffing petrol and diesel consumption andreducing air pollution.