Renowned economist Wu Jinglian attacked the delay of fuel tax reform during the Fifth Session of the 10th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

"I believe that we should have added a fuel tax last year when the crude oil price was less," he said, without pulling any punches. "We should have maintained the crude oil price and added a fuel tax, which we had been considering for years. But instead, in the name of protecting car owners, the government simply reduced the gas retailing price. Of course, everyone seemed to applaud the price reduction, like the media, those who can afford a car, and car sellers. But will the fuel price reduction benefit people in the long run?"

As early as 1994, some government departments had suggested to impose a fuel tax. The Highway Law of China, passed in 1997 by the National People's Congress, noted that the road maintenance fee should be replaced by a fuel tax starting in 1998. The Highway Law also mentioned the specific articles about a fuel tax would be decided by the State Council. However, after that, people simply got the news that the fuel tax "would be carried out at an appropriate time." In January 2005, at a press conference held by the State Council Information Office, Xie Xuren, Commissioner of the State Administration of Taxation, disclosed that the draft plan on fuel tax reform had been enacted and it needed some time to take effect.

But Wu maintained during the price reduction of crude oil was the best time to impose a fuel tax and he was unsatisfied with its delayed adoption.

"It is obvious that the [vehicle] carrying capacity of our cities has run into serious problems," said Wu. "It is true that car sales increases are good. But can our country sustain such rapid increases? Can it work if every well-off person uses a car as a major transportation mode?"

Wang Zhaobin, a CPPCC member sitting beside Wu, retorted, "Be careful, it's dangerous to talk like that."

Wang's prodding seemed to get Wu more irritated.