Taxes will be raised on big cars and reduced on smaller ones from Sept 1 to save energy and reduce pollution.

Owners of cars with engines above 4-liter capacity will have to pay 40 percent tax, double the existing rate, the Ministry of Finance said yesterday. The tax for vehicles with engines between 3 and 4 liters will be up from 15 to 25 percent.

And the tax on cars with engines below 1-liter capacity will be reduced from 3 to 1 percent.