What are the benefits of paying vehicle and vessel tax?
1 Answers
This is a mandatory tax. The positioning of the vehicle and vessel tax is not clear enough, but its most basic function as a tax—raising local fiscal revenue—has been somewhat fulfilled, although the total revenue is very limited. The reduction and exemption policies for new energy vehicles and other energy-saving small-displacement vehicles make the vehicle and vessel tax more like an environmental protection tax. More related introductions are as follows: 1. Vehicle and vessel tax: It refers to a property tax levied on vehicles and vessels that should be registered with public security, transportation, agriculture, fishery, military, and other management departments in China according to law, based on their types and calculated according to the prescribed tax basis and annual tax standards. The vehicle and vessel tax should be paid annually together with the compulsory traffic insurance. The vehicle and vessel tax is levied on an annual basis, with a one-time payment, and the tax period is from January 1 to December 31 each year, so it is levied every year. 2. Vehicle and vessel tax is a local tax: It is collected and managed by local tax authorities. For motor vehicles, in order to facilitate taxpayers and save their tax payment costs and time, according to regulations, insurance institutions engaged in compulsory traffic accident liability insurance business are the withholding agents of the vehicle and vessel tax, collecting and remitting the vehicle and vessel tax when selling compulsory traffic accident liability insurance, and promptly remitting the tax to the state treasury.
