What does the vehicle and vessel tax mean?
2 Answers
Vehicle and vessel tax refers to a property tax levied on vehicles and vessels that are required by law to be registered with departments such as public security, transportation, agriculture, fisheries, and military in China. Here is the relevant introduction: 1. Collection of vehicle and vessel tax: It is calculated and levied based on the type of vehicle or vessel, according to the prescribed tax basis and annual tax standards. Starting from July 1, 2007, vehicle owners are required to pay the vehicle and vessel tax when purchasing compulsory traffic insurance. 2. Preferential policies for vehicle and vessel tax: On August 1, 2018, the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information Technology, and the Ministry of Transport issued the "Notice on Energy-saving and New Energy Vehicles and Vessels Enjoying Preferential Policies on Vehicle and Vessel Tax," which stipulates that new energy vehicles and vessels meeting the standards are exempt from the vehicle and vessel tax, while energy-saving vehicles meeting the standards are subject to a 50% reduction in the vehicle and vessel tax.
This vehicle and vessel tax is essentially a fixed annual fee we pay for using our cars, falling under the category of property tax. Simply put, it's similar to property tax for houses, but applied to the vehicles we drive. When I renew my car insurance every year, the insurance company directly collects this fee for me. The amount is determined by engine displacement - my 1.6L family car costs 360 yuan annually. This tax is managed by local governments, and standards may vary slightly between provinces. For example, many regions currently exempt new energy vehicles. Don't even think about tax evasion - the DMV will verify tax payment certificates during annual inspections, and vehicles with unpaid taxes won't pass inspection.
