China's passenger car to be classified according to the engine's engine evacuation

According to the Draft Vehicle Tax Law proposed for consideration by the Standing Committee of the National People's Congress on the 25th for the first time, the taxation basis for China's passenger vehicle and boat tax will be adjusted from the current unified taxation to the classification based on engine displacement.

On October 25, 2010, the National People's Congress Standing Committee for the first time considered the draft of the Taxation Law for Vehicles and Vehicles. The taxation basis for the taxation of passenger vehicles and boats in China will be adjusted to the classification based on the size of engine exhaust. At the same time, vehicles and boats that use energy to save energy and use new energy may be exempted or exempt from vehicle and boat taxes.

The draft stipulates that the tax burden on passenger and vehicle vehicles currently accounting for about 72% of the total automobile fleet in China (for cars with less than nine passengers) will be reduced, increased, and increased, depending on the size of engine exhaust. Structural adjustments are as follows:

- The tax rate will be reduced or remain the same for small-displacement vehicles with a displacement of around 1.6 percent of the total existing passenger vehicles and a displacement of 1.6 liters or less.

- The medium-displacement vehicles with a displacement of 1.6 to 2.5 liters, which accounts for about 39% of the total number of passenger vehicles available, will be adjusted higher than the existing tax amount of 360 to 660 yuan.

-- Larger and larger displacement vehicles with a displacement of 2.5 liters or more, which account for about 3% of the total number of existing passenger vehicles, have a larger increase than the current tax range of 360-660 yuan.

In the range of tax concessions for vehicles and boats, in addition to the provincial, autonomous region, and municipalities directly under the central government, the people's governments of the provinces, autonomous regions, and municipalities directly under the central government can continue to provide regular tax concessions for public transport vehicles, as well as tax concessions.

Specific provisions are:

- Vehicles and boats that use energy to save energy and use new energy may be exempted or exempted from tax on vehicles and boats;

- If taxation or exemption is really necessary for taxation due to severe natural disasters and other special reasons, it may be reduced or exempted;

- The people's governments of provinces, autonomous regions, and municipalities directly under the Central Government may, on the basis of actual local conditions, periodically reduce or exempt passenger and vehicle taxes on motorcycles, tricycles, and low-speed trucks owned by rural residents and used mainly in rural areas.

In addition, the draft slightly increases the amount of tax on commercial buses carrying more than nine passengers. The current tax rate of RMB 16 to RMB 120 per ton for trucks remains unchanged. In order to support the development of car dumping and transport, the current tax rate for trucks should be reduced to 50% of the vehicle tax.

The current tax payment for vehicles and boats is as follows: The tax amount for small passenger cars with less than 9 passengers is 360 to 660 yuan. Both luxury cars and ordinary cars try the same standards. The Minister of Finance, Xie Xuren, commented that “the property tax nature of the vehicle and boat tax and the proper adjustment function cannot be fully reflected”.