What Are the Benefits of Paying Vehicle and Vessel Tax?
2 Answers
Vehicle and vessel tax is a mandatory tax. Although its positioning is not clearly defined, it still serves the basic function of taxation by raising local fiscal revenue to a certain extent, despite the very limited total revenue. The tax reduction and exemption policies for new energy vehicles and other energy-saving small-displacement vehicles make the vehicle and vessel tax more akin to an environmental tax. Introduction to Vehicle and Vessel Tax: It refers to a property tax levied on vehicles and vessels that are legally registered with public security, transportation, agriculture, fishery, military, and other administrative departments within the country. The tax is calculated based on their types, prescribed tax calculation basis, and annual tax standards. The vehicle and vessel tax should be paid annually together with compulsory traffic insurance. It is levied on an annual basis, with a one-time payment, and the tax payment period runs from January 1 to December 31 each year, making it an annual levy. Vehicle and Vessel Tax as a Local Tax: It is administered and collected by local tax authorities. For motor vehicles, to facilitate taxpayers and save their costs and time, insurance institutions engaged in compulsory traffic accident liability insurance are designated as withholding agents for the vehicle and vessel tax. They collect and remit the tax when selling compulsory traffic accident liability insurance and promptly transfer the tax revenue to the national treasury.
We ordinary folks pay the vehicle and vessel tax every year, honestly just for the peace of mind of driving legally on the road. Paying this money does bring real benefits to our daily lives. Take that bumpy road at the entrance of our neighborhood, for example—it was completely repaved by the city government the year before last, and now it’s smooth as can be. And the last time I had a flat tire and called for roadside assistance, two tow trucks arrived and handled it super quickly. All of this is supported by road maintenance fees and emergency funds. Plus, when it comes to the annual vehicle inspection at the end of the year, you can’t pass without this tax record. Last year, Uncle Wang next door forgot to pay his tax and got stopped at the highway checkpoint in the dead of winter to sort it out—what a hassle that was.
