What is Vehicle and Vessel Tax?
2 Answers
Vehicle and Vessel Tax refers to a type of tax that owners or managers of vehicles and vessels within the territory of the People's Republic of China are required to pay according to the Vehicle and Vessel Tax Law of the People's Republic of China. Below is an introduction to the Vehicle and Vessel Tax: 1. Vehicle taxation: Motor vehicles and vessels that are required by law to be registered with the vehicle and vessel administration department; those that do not require registration by law. 2. Vessel taxation: Vessels, including motorized vessels and non-motorized vessels. Motorized vessels refer to those powered by fuel or other energy sources, such as passenger ships, cargo ships, hovercrafts, etc.; non-motorized vessels refer to those powered by human or other forces, such as wooden boats, sailboats, sampans, etc.
Vehicle and vessel tax is essentially a road maintenance fee converted into a tax. When we purchase compulsory traffic insurance every year, the insurance company collects this fee on behalf of the government. The funds are primarily used for road construction and environmental protection projects. Interestingly, the amount paid depends on the engine displacement of the vehicle. For example, passenger cars are taxed based on their displacement—my 1.6L car pays 360 yuan annually, while my neighbor's 3.0L vehicle has to pay over 1,000 yuan. If this tax isn't paid, the vehicle won't pass its annual inspection, so everyone should remember to pay it on time.
