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Beijing to raise vehicle and vessel tax

By Rong Xiandong (chinadaily.com.cn)
Updated: 2007-06-26 18:04

The Beijing Municipal Legislative Affairs Office yesterday released draft rules on the implementation of China's interim regulations on vehicle and vessel tax, seeking public opinions.

According to the implementation rules, taxes on private buses will be raised to a range between 360 yuan (US$47.25) and 600 yuan per year, double the previous level of 200-300 yuan.

Buses used for public transit in urban and rural areas will be exempted from the tax, according to the rules.

The taxes on trucks, including semi-trailers and towing vehicles, and special vehicles will be calculated at 96 yuan annually per ton of gross weight, while tri-wheeled and low-speed vehicles will have to pay 60 yuan in tax each year per ton of gross weight.

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For motorcycles, the tax levied will be 180 yuan per year. Ships have to pay tax of 3-6 yuan per ton of net tonnage on a yearly basis.

The Beijing local taxation authorities said the final implementation rules on new vehicle and ship tax will be announced in September or October after the Beijing municipal government approves them.

Chinese insurance companies licensed to offer compulsory third party vehicle insurance will collect vehicle and ship tax for the tax authorities as of July 1 in accordance with the Interim Regulations on Vehicle and Vessel Tax.

Vehicle and vessel tax is raised in an effort to help implement the State's policies on energy saving and environmental protection, said the State Administration of Taxation.

Experts said rapidly increasing vehicles, which discharge a lot of emissions, are putting heavy pressure on China's energy supply and damaging the environment. They noted that the tax hike marks the government's another attempt to regulate the national economy.

China began to enforce the Interim Regulations on Vehicle and Vessel Tax on January 1 this year, replacing the vehicle and ship license plate tax and vehicle and vessel use tax that had been collected for decades with the new vehicle and vessel tax.