Beijing, May 19 (IANS/EFE): China will cut tax on environment-friendly cars and ships, as part of an initiative to save energy, reduce pollution and encourage sustainable transport, state-run newspaper China Daily reported on Tuesday.

Electric, hybrid and hydrogen fuel cell cars will be exempt from vehicle and vessel tax, while energy-saving cars and ships will pay only half the tax, announced the ministries of finance, industry and information technology and the State Administration of Taxation.

China's ministry of transport plans to purchase 300,000 new green public transport vehicles, including 200,000 buses and 100,000 taxis and delivery vehicles.

In the first quarter alone, Chinese production of environment-friendly vehicles tripled to 25,400 units.

The government has installed 24,000 charging stations for electric cars on three major highways, including that between Beijing and Shanghai, China's two most important cities.

The government plans to install a further 10,000 charging points before 2017.