Aug. 14 – Beginning September 1, China will revise its tax rates on passenger cars to encourage the purchase of smaller-capacity, fuel-efficient engines.

The move is in accordance to a national campaign that hopes to decrease emissions and energy use from 2006 to 2010. “We hope the new policy will help restrain the production and sales of high-emission vehicles while promoting the development of low-emission cars,” the Ministry of Finance said in an online statement.

Taxes on cars with engine capacities of 3 to 4 liters will increase from 15 percent to 25 percent while those with engines of more than 4 liters will double to 40 percent. On the other hand, engines with capacities of 1 liter or less will decrease from 3 percent to 1 percent.