
Domestically produced cars are subject to vehicle and vessel tax, which is also known as the vehicle and vessel usage tax. The vehicle and vessel usage tax is a type of usage behavior tax levied on vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or territorial ports, calculated based on their type, tonnage, and prescribed tax rates. According to relevant regulations, car owners must pay the vehicle and vessel usage tax when purchasing auto insurance. The tax can be paid by the insurance company on behalf of the owner, eliminating the need for the owner to visit national tax authorities to complete the payment. The payment standards for vehicle and vessel tax vary by region and also differ based on the type of vehicle. For example, the standards for trucks, sedans, and buses are all different. If car owners need to inquire about the vehicle and vessel usage tax, the insurance company will calculate the tax amount when the auto insurance is purchased. The vehicle and vessel tax is levied annually. Taxpayers must pay the full year's tax in one installment within the prescribed tax declaration period. For newly purchased vehicles or vessels, the taxable amount for the year of purchase is calculated monthly from the month when the tax obligation arises. The calculation formula is: taxable amount = (annual taxable amount ÷ 12) × number of taxable months.

Domestic cars indeed need to pay vehicle and vessel tax, like the domestic SUV I just bought, which requires annual payment. The vehicle and vessel tax is a mandatory fee for all vehicles registered in China, regardless of whether they are domestic or imported, and it is mainly calculated based on engine displacement. Generally, vehicles with smaller displacements have lower taxes, such as those below 1.6L, which pay less. However, for larger displacement vehicles like the 2.0L car my friend bought, the tax is significantly higher. Payment is usually made together with compulsory traffic insurance, and it can be handled directly through the insurance company. Personally, although this tax feels like a bit of a burden, knowing that it is used for road maintenance and similar purposes makes it somewhat easier to accept. When buying a car, I tend to prioritize domestic models with smaller displacements, as they save on taxes and are more environmentally friendly. After all, who wouldn’t want to keep a little more money in their pocket?

As a car enthusiast, I must say domestic vehicles are definitely subject to vehicle and vessel tax. This tax is determined by engine displacement: the tax is lowest for displacements below 1.0L, slightly higher for 1.0 to 1.6L, even higher for 1.6 to 2.0L, and quite expensive for anything above 2.0L. The tax rates are the same for both domestic and imported vehicles—no difference, because the tax law is fair to everyone. Take my domestic sedan with a 1.5L engine, for example—it costs a few hundred yuan in tax annually, which is pretty easy to calculate. I recommend considering engine displacement when buying a car; choosing a smaller one can save you on taxes. During routine maintenance, I also remind my friends to pay their taxes on time to avoid late fees, as overdue payments can affect the annual vehicle inspection, which is quite annoying.

Domestic cars definitely have vehicle and vessel tax. I've been driving a domestic brand for several years and this fee is unavoidable every year. The tax is mandatory, based on your car's displacement to determine the amount. Smaller displacement cars have lower taxes, while larger displacement ones cost more. This tax is included in daily expenses, similar to gasoline costs, and is a fixed burden for car owners. To save some money, switching to a domestic electric or hybrid car with smaller displacement earlier would help. Overall, although this tax isn't high, delaying payment can cause trouble. I've seen people get fined for forgetting to pay, so handling it on time is the safest approach.


