The State Council, or China's cabinet, began soliciting public opinions on a draft regulation for the implementation of the Vehicle and Vessel Tax Law, which will exempt electric cars, fuel-cell vehicles and hybrid vehicles from taxation.

The draft regulation was created in line with the Vehicle and Vessel Tax Law, which stipulates that "tax reductions and exemptions should be granted for vehicles and vessels that conserve energy or use new energy," according to a statement released by the Legal Affairs Office of the State Council. Taxes on other hybrid vehicles will be halved, the draft regulation says.