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Shanghai explains expensive car plates

(Xinhua)
Updated: 2013-03-07 10:26

BEIJING - Shanghai Party chief Han Zheng admitted that vehicle license plates are too expensive in his city, and pledged to use the funds raised from the license bidding for local residents.

"I agree that car plates are too expensive," Han, secretary of the Shanghai Municipal Committee of the Communist Party of China, said Wednesday while attending a group discussion of the Shanghai delegation to the first session of the 12th National People's Congress, China's legislature.

Shanghai explains expensive car plates

To date, one vehicle license plate has been charged for over 80,000 yuan ($12,698), enough to buy an economy car in the city.

The Shanghai municipal government charged vehicle license plates in 1994, as part of the moves to address the heavy traffic problem in the metropolis of 23.8 million residents.

Han promised to disclose to the public the incomes from selling vehicle license plates.

"The incomes are raised from the people and should be used to serve the people," Han said.

While agreeing vehicle license plates are expensive, Han said demands still exceed supply.

"If we want to keep the prices in line, we have to grant more license plates," Han said.

More license plates, which means more private cars, will aggravate the traffic woes of Shanghai, where a total of 2.8 million vehicles are expected to run by this year.

"At present, Shanghai releases 9,000 plates each month. We hope to do the job better through enhancing supervision and improving the system," Han said.

Han also defended China's latest five measures, promulgated by the State Council on February 20, regulating the real estate market. The measures, including levying 20 percent personal income taxes for the sale of the second home, are meant to check rampant rise in property prices.

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