China planning national fuel tax

BEIJING, Mar 9 (AP) -- China plans to impose a national fuel tax, but is waiting due to high global oil prices and domestic inflation, the finance minister said Wednesday.

Finance Minister Jin Renqing said China prepared plans several years ago for a tax to promote conservation. But he said imposing it now would add to transportation costs and hurt cab drivers' incomes.

"We are determined to roll out a fuel tax but we have to chose an opportune time," Jin said at a news conference held during the annual meeting of China's national parliament.

China's consumer inflation index hit a seven-year high in 2004, when global crude oil prices rose to near US$60 a barrel.

Premier Wen Jiabao, in a report Saturday on economic plans, said the government would try to hold inflation to 4 percent this year.