Yacht sellers feeling sunk by tax proposal

BEIJING - Owners of yachts - a luxury that is gaining popularity among China's newly rich - will have to pay an annual vessel tax based on the length of their craft if a draft law is passed by the top legislature.

The latest draft of the vehicles and vessels taxation law was submitted to the National People's Congress (NPC) Standing Committee for second reading on Wednesday.

"Based on the principle of taxation determined by law, a user tax for yachts has been included in the latest draft and will be collected according to a vessel's length," said Zhang Bailin, vice-chairman of the NPC Law Committee, who explained the draft to legislators.