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Vehicle and Vessel Tax to rise

Shingo From Gasgoo.com| January 29 , 2007

Beijing Local Taxation Bureau recently confirmed for the first time, Beijing will fix a proper tax for common cars by soliciting the public opinions through websites or other means, after the implementation of Interim Regulations of the People's Republic of China on Vehicle and Vessel Tax on January 1 this year. Nanjing also is drafting a new standard allowance.
 
The Regulations integreted the Vehicle and Vessel Usage Tax & Vehicle and Vessel License Tax as Vehicle and Vessel Tax, and is applicable to all taxpayers, including foreign-invested enterprises, foreign enterprises and foreigners, with an ending of long-term non-uniform of the vehicle and vessel tax for the foreign entities and domestic enterprise.
The 360 Yuan is still a great increase compared with the Vehicle and Vessel Annual Tax 200 Yuan for small cars previously in Beijing.

The original Vehicle and Vessel License Tax has not been adjusted for 55 years (1951-present), and the Vehicle and Vessel Usage Tax which was based on this has also lasted 20 years (1986 - present). Considering the current vehicle and vessel taxes and fees, the Regulations is to keeps the lower limit of the original Vehicle and Vessel Usage Tax and make the higher limit 2 times to meet the economy development. For example, the maxium for passenger cars is from 320 Yuan to 660 Yuan and for truck is from 60 Yuan to 120 Yuan. Meanwhile, the passenger car was sub-divided into four categories: large passenger cars, medium, small and mini by the Ministry of Finance and State Administration of Taxation in the country, which was consistent with the categories made by the Ministry of Public Security. And the tax will be specified respectively to the categories. The lower and higher limit of Vehicle and Vessel Tax for small cars (less than or equal to nine seats) was expected to be 360 Yuan and 660 Yuan.

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