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The Chinese government will raise taxes on the use of vehicles and ships from January 1, according to a new regulation published yesterday.

The upper limit for vehicle tax is to double, bringing the annual tax on passenger-carrying vehicles to between 60 and 660 yuan, according to the State Administration of Taxation (SAT).

The yearly tax on freight vehicles rises to between 16 and 120 yuan per ton.

The old tax standard, set 20 years ago, had proven to be too low, said a statement from the SAT.

The tax collection on ships will continue based on each vessel's capacity. By raising both the lower and upper limits, it will come to between three and six yuan per ton.

The regulation applied to both domestic and foreign companies, as well as both Chinese and foreign individuals, the SAT statement said.

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