Three car manufacturers will enjoy up to 30 percent exemption of consumer tax, officials with the State Environmental Protection Administration (SEPA) said Friday.

Officials said that cars whose exhaust emissions are confirmed to meet the Europe II standard are qualified for the tax exemption,said the officials.

The favorable policy will cover the qualified cars made by Shanghai GM Company Ltd., Shanghai Volkswagen Corp. and Aeolus-Citroen Automobile Co., Ltd. based in central China's Hubei Province.

Another domestic auto giant, FAW-Volkswagen Automotive Company Ltd., is also applying for the special treatment. If approved, the four leading domestic manufacturers will get tax cuts totaling 1.5 billion yuan (US$181 million) this year, according to experts' initial estimates.

However, the various tax cuts for individual manufacturers willbe checked and ratified by the State Administration of Taxation, officials said.

Officials said that the policy is to encourage manufacturers to make their cars conform to an even higher standard of environmental protection.

(People's Daily November 17, 2001)