Gasgoo.com (Shanghai December 27) - The new Vehicle and Vessel Tax Law, which is scheduled to come into effect next Monday, hopes to somewhat lower the financial burden for automobile owners. However, reception from car owners seems to be muted, as overall taxes are still very high, says an Economic Observer News report appearing today.

According to statistics from the State Administration of Taxation, the new policy would decrease or not change taxes for around 87 percent of passenger vehicles currently in use. The policy would most affect the 13 percent of vehicles with engine sizes of over 2.0 L, whose owners would see an increase in taxes. Among them, the three percent of vehicles whose engines are larger than 2.5 L would see a relatively large increase in taxes. Additionally, energy efficient drivers would see their tax rates decrease or be exempt from the tax in general.

The reaction from automobile owners has been less enthusiastic than the government must have hoped. The tax in question only accounts for a small part of the total tax burden owners have to deal with. According to some estimations, an average owner of a 1.6 L car may see a tax decrease of only 60 yuan ($9.46).

A car owner, who wishes to remain anonymous, commented that he was satisfied with the government's decision to lower taxes, but was hoping to see a larger decrease. Several other owners who were interviewed, said that they were totally unaware of any new changes to the tax system, since yearly taxes are paid in full one time a year.