China plans to eliminate its annual motor vehicle “travel tax” for owners of electric, fuel-cell, and plug-in hybrid vehicles and to charge a reduced rate for smaller combustion-engine vehicles, beginning in January 2012. Owners of gas or diesel powered cars with a 1.6-liter engine or smaller would be required to pay $10 to $80. Automobiles with 3.0-liter engines and larger would be taxed annually between $370 and $830. In June 2010, China subsidized purchases of electric and hybrid vehicles that cut up to a maximum of $9,254 off the sales price of the alternative vehicles. On June 8, China announced they will setup a new “cash-for-vehicles” scrapping program. Consumers could get $1,696 to $2,776 for trading in vehicles older than 6 years.