Vehicle and vessel tax has an unclear positioning, but its most basic function as a tax—raising local fiscal revenue—still plays a certain role, although the total revenue is very limited. The tax reduction and exemption policies for new energy vehicles and other energy-saving small-displacement vehicles make the vehicle and vessel tax more like an environmental tax. More related information is as follows: 1. Vehicle and vessel tax: It refers to a property tax levied on vehicles and vessels that should be registered with public security, transportation, agriculture, fishery, military, and other management departments in China according to their types, based on the prescribed tax calculation basis and annual tax standards. 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 period is from January 1 to December 31 each year, so it is collected every year. 2. Vehicle and vessel tax is a local tax: It is collected and managed 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 for motor vehicles are designated as withholding agents for vehicle and vessel tax. They collect and remit the tax when selling compulsory traffic accident liability insurance and promptly transfer the tax to the treasury.
