The draft of the draft tax for vehicles and boats solicit opinion results: More than half of proposed tax reductions

The National People's Congress Standing Committee's Legal Work Committee announced to the public on the 14th that it had publicly solicited the opinions of the draft law on the taxation of vehicles and ships. The results showed that of the nearly 100,000 comments received, 54.6% of the opinions were proposed to be revised and tax burdens reduced.

The draft tax laws for vehicles and ships were submitted to the National People's Congress Standing Committee for the first time on October 25. On the 28th, the Standing Committee of the National People's Congress publicly solicited opinions on the draft from the society, and the public throughout the country expressed their views through the Internet, letters, newspapers and magazines. As of November 30, a total of 97,295 comments were received, 40 letters from the masses.

In the comments solicited, there are 35,779, or 36.77%, in favor of the draft, which has increased the administrative regulations into the law. There are 53,137 articles that require amendments to the draft and reduce the tax burden, accounting for 54.62%. There are 8379 against the formulation of the tax laws for vehicles and boats. Article, accounting for 8.61%.

Some of the opinions put forward that the draft has "taking legislation to take the car" in disguise to increase prices and increase the burden on the owners. Passenger cars are currently the most levied items for taxes and fees. According to statistics, various taxes and fees account for 40% of the total cost of buying a car. From the time of delivery, purchase, possession, and use of a vehicle, the total tax and taxes paid are one of the highest in the world: 17% VAT, 10% vehicle purchase tax, and 1% to 40% consumption tax. 15% tariffs on imported cars, as well as fuel tax, plus tolls, bridge tolls, compulsory insurance fees, annual inspection fees, high parking fees, etc. In some places, road maintenance fees have not yet been cancelled. In some places, road construction fees and environmental protection fees are also imposed. Taxes on vehicles and boats will soon rise sharply, and the congestion charges that some cities are planning to impose on them are also in full swing, further accentuating the burden on vehicle owners.

A netizen message from the Shanghai-based “Chen Liangrui” pointed out: As a guide for residents to use energy-efficient transportation, the implementation of the tax law is significant. However, the user’s tax burden should be taken into consideration. Vehicles with displacements below 2.0 should be tax-deductible or flat. Vehicles with displacements above 3.0 can increase tax burden.

Some comments suggested that compared with the current tax amount, the draft only reduced the tax amount of 1.0 or less, but this accounted for only a small proportion of passenger vehicles, and most vehicle owners have increased the burden.

Many opinions have suggested that the government has introduced policies in the past two years to encourage people to buy passenger cars with a displacement of less than 1.6 liter. Taxes on such vehicles should also be reduced rather than equal; passenger cars with displacements under 2.0 are the main models owned by ordinary urban consumers and are mainly used for basic living needs such as commuting to and from work, picking up children, and traveling with the elderly. The legislators and the taxation and taxation departments should not continue to look at the development of today’s society with the old ideas. They think that as long as they are cars, they belong to luxury goods, and all classes are heavily taxed.

Professor Shi Wendan of the China University of Political Science and Law's Finance and Taxation Law Research Center pointed out that the current taxes on vehicles in China are mainly VAT, consumption tax, vehicle purchase tax, and vehicle and vessel taxes. Taxes are numerous, and duplicate taxation is serious. The tax burden is also high. Taxation of vehicles and boats is a small tax in our country. Considering the scientific nature of the tax system and the reform of the medium and long-term taxation system, the direction of the future development of the vehicle and boat tax is abolished, especially after the consumption tax reform and the real estate tax reform are completed, the role of the vehicle and boat tax will be Taxes are replaced. Therefore, as a transitional tax type, the taxation of vehicles and boats has recently been increased from regulations to the law. The specific taxation factors should be changed slightly. In particular, the tax burden on vehicle and boat taxes should not be raised.

He suggested that the taxpayer's taxation plan should be reduced, four tax items should be set up, and the benchmark tax amount should be appropriately lowered to ensure that the vast majority of vehicle tax burdens remain unchanged or decrease appropriately.