What is the meaning of vehicle and vessel tax?
2 Answers
Vehicle and vessel tax has the following meaning: 1. The so-called vehicle and vessel tax refers to a type of tax that should be paid by the owners or managers of vehicles and vessels within the territory of the People's Republic of China according to the Vehicle and Vessel Tax Law of the People's Republic of China. 2. Starting from July 1, 2007, car owners need to pay the vehicle and vessel tax when purchasing compulsory traffic insurance. 3. 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 the Preferential Policies for Energy-Saving and New Energy Vehicles and Vessels Regarding Vehicle and Vessel Tax," which requires that new energy vehicles and vessels meeting the standards be exempted from vehicle and vessel tax, and energy-saving vehicles meeting the standards be subject to half the vehicle and vessel tax.
The vehicle and vessel tax is essentially a regular payment that every car owner has to make to the government, kind of like a usage fee for the vehicle. I know this tax usually comes in two forms: one is the purchase tax paid in a lump sum when buying a car, which is like an entry ticket for new vehicles; the other is the annual vehicle and vessel usage tax, which is typically paid together with the compulsory traffic insurance. Why is this tax collected? It’s mainly used for public utilities, such as building highways, maintaining urban roads, and environmental projects—owning a high-emission vehicle might even mean paying more. I remember that forgetting to pay can result in fines or affect the annual vehicle inspection, which is quite a hassle. Usually, the 4S dealership helps calculate the purchase tax when buying a car, but the annual tax is something you need to remember yourself—it can often be handled through the insurance company’s app, making it much more convenient. Overall, paying taxes on time is a car owner’s responsibility and indirectly contributes to safer and cleaner roads.
