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.