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

[McCorey]

It helps local governments raise fiscal revenue and facilitates the management and rational allocation of vehicles and vessels. Here are the relevant details: Vehicle and Vessel Tax: This is a property tax levied on vehicles and vessels 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 specified tax bases and annual tax rates. Starting from July 1, 2007, car owners are required to pay this tax when purchasing compulsory traffic insurance. Local Tax: Vehicle and Vessel Tax is a local tax, collected and managed by local tax authorities. For motor vehicles, to facilitate taxpayers and reduce their costs and time, insurance institutions engaged in compulsory traffic liability insurance are designated as withholding agents. They collect and remit the tax when selling compulsory traffic liability insurance and promptly transfer the funds to the state treasury.