China: New vehicle, vessel tax from Jan 1 image

The Republic of China will implement a new vehicle and vessel tax law starting Jan. 1 next year, according to a statement posted to the State Administration of Taxation website on Monday.

The adoption of adjusted taxes for vehicles and vessels under a new law is intended to contribute to efforts of energy conservation and emissions reduction in China, a government statement said.

According to the new legislation, automobiles or vessels carrying nine or less people will be taxed according to size of engine emissions, a departure from before when taxes were determined solely by number of people transported.

Electric vehicles and hybrids are excluded from paying the tax under the regulation, which indicates the nation’s policy orientation toward environmental protection and energy saving, the statement said.