China on Wednesday released a list of consumer goods to be taxed at varied consumption tax rates from April 1.

The Ministry of Finance and the General Administration of Taxation have decided to impose different tax rates on disposable wooden chopsticks, wooden floor panels, yachts, luxury watches and more oil-based products.

Item	Consumption Tax Rate
Disposable wooden chopstick	5%
Wooden floor panel	5%
Yacht	10%
Golf ball	10%
Golf club	10%
Luxury watch	20%

China will collect a consumption tax on naphtha, solvent, lubricant at a rate of 0.2 yuan per liter, and 0.1 yuan per liter for aviation fuel oil, said the ministry.

The ministry said the government will collect only 30 percent of the tax on naphtha and solvent in order to lessen the impact on the industry sector. It will also not collect the tax on aviation fuel for the time being. The ministry introduced new tax rates for automobiles, including tax rates ranging from 3 percent to 20 percent for automobiles according to the size of engines.

The tax rate for automobiles with engine size at or below 1.5 liters will be 3 percent, and 20 percent for automobiles at 4.0 liter or above.

The tax rate for light and medium-sized business passenger vehicles will be 5 percent, according to the ministry.

The tax rate for motorcycles whose engine size is at or below 250 ml at 3 percent and 10 percent for those above 250 ml. The tax rate for auto tyre will lowered to 3 percent from its current rate of 10 percent.

The tax rates for distilled spirits will be 20 percent, reunifying the varied tax rates for liquor made from grain and those made from potatoes.

The ministry said it will scrap the consumption tax on skin care and shampoo products as of April 1.

The Ministry of Finance said the plan has been approved by the Chinese Government and was designed to control and regulate energy consumption, help protect the environment by reducing consumption of timber resources, and narrow the gap between the poor and the rich by collecting a consumption tax on the luxury items.

(Xinhua News Agency March 23, 2006)