The tax burden on taxpayers levied on new vehicle and vessel taxes will not increase significantly from next year

Today, the Ministry of Finance and the State Administration of Taxation issued an interpretation document on the “Law of the People's Republic of China on Vehicle and Vessel Taxes”. It is clear that the new law will come into effect on January 1, 2012. In 2011, the current “Tentation Regulations on Vehicle and Vessel Taxes” is still applicable to levy taxes on vehicles and boats. According to a circular previously issued by the Beijing Municipal Bureau of Local Taxation, the city’s personal tax for motor vehicles in 2011 is the same as last year, namely 480 yuan for minibuses and 300 yuan for minivans.

In response to the question of double taxation on the tax on vehicles and boats, the general tax documents pointed out that China currently has three taxes on the owners or managers of passenger vehicles: vehicle purchase tax, fuel consumption tax, and vehicle and vessel taxes. Among them, vehicle purchase tax comes from vehicle purchase surcharge, fuel consumption tax comes from road maintenance fees and other charges. Both types of taxes are derived from tax-to-tax reforms, and the funds raised are dedicated to highway construction and maintenance. The tax on vehicles and boats is a property tax and it is a type of tax that is levied on the ownership. Since the founding of the People’s Republic of China, the taxation of vehicles and boats has been collected for 60 years. The legislation on the taxation of vehicles and ships is not a new type of tax, but only legislation. These three kinds of taxes have different focuses and different functions. There are no double taxation or duplicated problems.

The person in charge of the tax general said that the adjustment of the tax on vehicles and boats will basically not increase the burden on taxpayers. “Because there are three principles for determining the amount of taxation, the first is to consider the actual tax standards that are currently being implemented everywhere; the second is not to increase the tax burden of most passenger cars; and the third is to refer to the tax burden of most passenger cars in most countries. Accordingly, the “T&L Tax Law” maintains the original tax burden for passenger cars of 2.0 liters (inclusive) or less, which account for 87% of the total, or moderate reductions, and for 2.0 to 2.5 liters (including) passenger cars, which account for approximately 10% of the total. The tax amount has increased slightly, and the tax rate for passenger vehicles with a 2.5-liter or higher ratio, which accounts for less than 3%, has been greatly increased.” In addition, the “T&L Tax Law” applies to goods vehicles, passenger cars and ships other than passenger vehicles (except yachts). ), etc., basically maintained the original level of tax burden, and the current tax rate applicable to trucks should be reduced from the current 50% of the tax paid on trucks. "So the overall tax burden remains unchanged, and only structural adjustments are made."

Compared with the Interim Tax Regulations on Vehicles and Vehicles, the “T&E Tax Law” has not only adjusted the tax burden structure but also used the displacement as a basis for taxation of passenger vehicles, but also increased the conditions for tax incentives. In addition to retaining the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government, they can provide regular reductions and exemptions for public transport vehicles and boats. They also provide that: First, vehicles and boats that use energy to save energy and use new energy can reduce or exempt vehicles and boats; second, provinces and autonomous regions. The people’s government of the municipality directly under the Central Government may, on the basis of actual local conditions, periodically reduce or exempt the tax on vehicles and boats for motorcycles, three-wheeled vehicles and low-speed trucks owned by rural residents and used mainly in rural areas; thirdly, it shall be affected by severe natural disasters. If taxation is difficult and there are other special reasons that need to be reduced or exempted, the taxes on vehicles and boats may be reduced or exempted.