Is the Vehicle and Vessel Tax Mandatory?

[VanKiara]

When purchasing compulsory traffic insurance, if the vehicle and vessel tax for the current year has already been paid, it does not need to be paid again. However, if the tax for the current year has not been paid, it must be settled. Insurance companies, acting as withholding agents, are required to collect the tax, and taxpayers cannot refuse. Below is relevant information about the vehicle and vessel tax: 1. According to Article 6 of the "Vehicle and Vessel Tax Law of the People's Republic of China": Insurance institutions engaged in compulsory third-party liability insurance for motor vehicles are the withholding agents for the vehicle and vessel tax. They must collect the tax in accordance with the law when collecting insurance premiums and issue tax collection certificates. 2. Vehicle and Vessel Tax Law: The "Vehicle and Vessel Tax Law of the People's Republic of China" is the legal basis for taxpayers to pay the vehicle and vessel tax. It was passed at the 19th Meeting of the Standing Committee of the 11th National People's Congress on February 25, 2011, and came into effect on January 1, 2012.

[JaylaDella]

I know this too well, the vehicle and vessel tax is absolutely mandatory! Every year when renewing the compulsory traffic insurance, the insurance company directly collects it on behalf, tightly bound with the compulsory insurance. I once thought I could pay the insurance separately, but the counter directly told me both must be handled together. If you don't pay the tax, the vehicle annual inspection will be blocked immediately. The vehicle management office is connected online, and the system can tell at a glance whether you've missed the payment. My neighbor forgot to pay last year and was only reminded during the temporary inspection, ending up paying a late fee. Frankly, this is a fee paid for using public roads and resources, similar in nature to the road maintenance fee included in gasoline.

[VonIsabella]

Mandatory purchase, as explicitly stipulated by law. When I bought my first car, I encountered this at the dealership—the purchase tax and vehicle and vessel tax were bundled together for payment. Every year when renewing insurance, there's always a line item in the policy details labeled 'Collection of Vehicle and Vessel Tax.' The tax bureau and vehicle management office share data; try skipping the payment, and the annual inspection system will automatically flag it. Nowadays, tax enforcement is strict; in some cities, banks even deduct it automatically during other transactions. Essentially, it's a property usage tax, and the same logic applies to boats. A friend who bought a used yacht recently had the boat management office verify the tax receipt as the first step during the transfer process.

[LeDelaney]

A mandatory payment item set in stone. It's bundled with compulsory traffic insurance and deducted from the policy, with insurance companies merely acting as collection agencies. I've checked the 'Vehicle and Vessel Tax Law' - all licensed vehicles and vessels must pay annually based on displacement or tonnage. Standards vary across provinces; in Guangdong, passenger cars are categorized into tiers from 480 to 660 yuan. The most obvious proof is that annual inspections require displaying tax payment certificates, and vehicle management offices have dedicated system modules for tax verification. Actually, these funds are used for road and bridge maintenance - just notice the 'Tax revenue is collected from the people and used for the people' slogan on road maintenance vehicles and you'll understand.