Though first considered in 1994, the implementation of a fuel tax in China has continually been delayed due to the fluctuating price of oil and rising inflation within the country's economy. The burgeoning Chinese auto industry as a whole, however, has finally slowed down with automakers in the country seeing lower profits and larger inventories this year. Despite the overall trend, sales of mini cars have been rising, which has led China to revisit the idea of a 20% - 50% fuel tax that would encourage automakers to develop even more fuel efficient vehicles. Currently China's gas and diesel prices are among the lowest in the world, and the proposed fuel tax would be modeled after Western Europe's tax policy.


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