What Are the Benefits of Vehicle and Vessel Tax for Car Owners?

[DianaFitz]

It raises fiscal funds for local governments and facilitates the management and rational allocation of vehicles and vessels. Below are the relevant details: 1. Vehicle and Vessel Tax: This is a type of property tax levied on vehicles and vessels that are required by law to be registered with public security, transportation, agriculture, fisheries, military, and other administrative departments in China. The tax is calculated based on the type of vehicle or vessel, according to the prescribed tax basis and annual tax standards. Starting from July 1, 2007, car owners are required to pay the vehicle and vessel tax when purchasing compulsory traffic insurance. 2. Local Tax: The vehicle and vessel tax is a local tax, collected and managed by local tax authorities. For motor vehicles, to facilitate taxpayers and save them time and costs, insurance institutions engaged in compulsory traffic insurance business are designated as withholding agents for the vehicle and vessel tax. They collect and remit the tax on behalf of the government when selling compulsory traffic insurance and promptly transfer the tax revenue to the state treasury.