Is Vehicle and Vessel Tax Mandatory?
2 Answers
Vehicle and vessel tax is not mandatory, but except for the legally exempted cases, most vehicles are required to pay it. Here is some information about vehicle and vessel tax: 1. Introduction: Vehicle and vessel tax is a property tax levied on vehicles and ships registered with public security, transportation, agriculture, fishery, military, and other administrative departments in China. The tax is calculated based on the type of vehicle or ship and the prescribed tax basis and annual tax rate. 2. Notes: If the vehicle and vessel tax for the current year has already been paid when purchasing compulsory traffic insurance, it does not need to be paid again. However, if the tax for the current year has not been paid, it must be paid. Insurance companies, as withholding agents, may require the payment of individual income tax, and taxpayers cannot refuse.
I recently dealt with the vehicle and vessel tax, which is indeed mandatory as it's required by national law. Every time I purchase compulsory traffic insurance, this tax is included. The government mandates that everyone must pay it; otherwise, the vehicle won't pass the annual inspection. If unpaid, there's also a risk of fines—I've heard of people being charged late fees for delaying payment. So, based on my experience, this isn't optional but a mandatory expense after buying a car. The tax is also used for road maintenance and traffic safety improvements, serving as a collective benefit. In short, no matter what car you drive, you must comply with this regulation to avoid trouble.
