The Meaning and Function of Vehicle and Vessel Tax
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Vehicle and vessel tax is a type of tax levied on vehicles and vessels, targeting units and individuals who own them. Its function is to facilitate the management and rational allocation of vehicles and vessels. There are three key points to note when purchasing insurance: Avoid duplicate insurance - When purchasing insurance, it is important to avoid duplicate coverage. Even if a vehicle owner purchases the same type of insurance multiple times, they will not receive excess compensation in the event of a claim. Avoid over-insurance or under-insurance - Over-insurance or under-insurance does not provide effective coverage. According to Article 39 of the Insurance Law: The insured amount shall not exceed the insured value. If it exceeds the insured value, the excess portion is invalid. If the insured amount is lower than the insured value, unless otherwise stipulated in the contract, the insurer shall bear the liability for compensation in proportion to the insured amount to the insured value. Carefully review the insurance documents - Check whether the third copy is printed on white carbonless paper with light brown anti-counterfeiting patterns and whether the upper left corner is printed with the words 'Supervised by the China Insurance Regulatory Commission' and the upper right corner is printed with the words 'Limited for sale in ×× province, city, or autonomous region'.
My first encounter with vehicle and vessel tax was last year when I bought a new car, which felt both novel and a bit stressful. The meaning of this tax is quite clear—it's an annual payment that car or boat owners must make to the government, similar to compensation for using public resources. As for its purpose, the state uses it to fund the maintenance of roads and bridges, such as repairing potholes or installing traffic lights, making travel safer and smoother. More importantly, it encourages people to choose environmentally friendly vehicles—for example, lower taxes for small-displacement cars and higher taxes for high-displacement or polluting vehicles. This is a smart move, as it indirectly reduces congestion and pollution. Paying the tax is very convenient; it can be handled together with car insurance. When planning my budget, I need to account for this fixed expense and prioritize fuel-efficient cars to save money. In the long run, its role in ensuring community road construction benefits everyone. Although it increases expenses, it's worth paying to support public infrastructure.
