What is the Vehicle and Vessel Tax in Insurance?
2 Answers
Insurance of the vehicle and vessel tax is a type of tax levied on the owners or managers of vehicles and vessels (hereinafter referred to as vehicles and vessels) based on the characteristics of the vehicle or vessel. The vehicles and vessels referred to here are those that should be registered with the vehicle and vessel management department according to the law. The following is an introduction to the relevant content: 1. Relevant regulations: According to the regulations, for the convenience of taxpayers, for motor vehicles other than tractors, military and armed police special vehicles, police vehicles, diplomatic vehicles, and public transport vehicles exempted by provincial governments, if the taxpayer has not paid the tax, the vehicle and vessel tax should be calculated and paid according to the local vehicle and vessel tax amount standard when purchasing compulsory insurance for traffic accident liability of motor vehicles. 2. Collection time: The vehicle and vessel tax should be collected according to the natural year. However, for newly purchased vehicles and vessels, the taxable amount of the year of purchase should be calculated monthly from the month when the tax obligation occurs.
When I first bought car insurance, I was also confused about what the vehicle and vessel tax was. Simply put, it's an annual tax you must pay to the government for using your car, unrelated to the insurance itself, but insurance companies collect it when you purchase compulsory traffic insurance. This money is mainly used for road construction and maintaining transportation facilities. The specific amount depends on your car's displacement—those below 1.6L are cheaper; my small sedan costs 420 yuan a year, while my neighbor's 3.0L SUV costs 1,800. Remember this date is crucial: insurance companies can only collect taxes for the current year. If you buy insurance in January, you pay the full year's tax, and even if you buy in December, you still pay the full amount. If you forget to pay, not only will you face fines if caught on the road, but you'll also incur late fees calculated daily.
