China's top legislature Monday began reviewing for the first time a draft law on vehicle and vessel taxation, as a bimonthly legislative session began.

The draft law sets out provisions for reducing taxes on energy-saving or clean energy-powered vehicles and vessels.

An executive meeting of the State Council, China's cabinet, passed the draft on Oct. 12.

The current law regulating taxes on vehicles and vessels took effect in 2007.

The 17th Session of the Standing Committee of the 11th National People's Congress (NPC) will run until Thursday.

China has 199 million motor vehicles on its roads.

(Xinhua News Agency October 25, 2010)