Beijing's measures for implementing the Provisional Regulations
of the People's Republic of China for Tax on Vehicles and Ships
have been approved by the municipality's standing conference. The
cluster of measures will be published and enter into force very
soon.
Under the latest measures, Beijing's annual tax on medium- and
small-sized buses will be raised to 480 yuan (US$63.4) from 200
yuan (US$26.4).
Tax on large buses increased the most, doubling to 600 yuan
(US$79.3). However, considering that tri-wheeled and low-speed
vehicles are owned mainly by farmers, the yearly tax standard
remained unchanged at 60 yuan. Furthermore, the measuring unit was
changed to dead weight from net weight, an attempt to relieve
farmers' burdens.
The truck tax went up to 96 yuan per ton in dead weight from 60
yuan per ton of net weight.
Zhou Jidong, the director of the Beijing municipal legislative
affairs office, suggested that the state provisional regulations
were only a rough outline of taxes on vehicles for reference. For
example, the large bus tax could range from 480 yuan to 600 yuan,
the medium bus tax from 420 yuan to 660 yuan, and the small tax
from 360 yuan to 660 yuan.
Such a wide range promised great flexibility for local
governments to tax vehicles in accordance to their own unique
situations. Tianjin, Chongqing, as well as Hebei Province had
worked out their own methods, while Beijing just learned from
others, said Zhou. Generally speaking, though, the current average
tax standard doubled the former one.
Military vehicles and tractors are exempted from tax, according
the new regulations. Beijing's government also exempted taxes on
the buses used for public transit in both urban and rural areas of
the city.
Although Beijing is not a coastal city, there were 337
registered and licensed ships at the end of March, totaling over
4,000 tons in net weight. Together with more than three million
vehicles, Beijing assumed overall taxes of one billion yuan (US$1.3
billion) from vehicles and ships this year.
Taxis will not be regarded as public transit vehicles and still
will not enjoy the tax exemption policy as city buses in
Beijing.
In addition, the vehicles owned by governments or parties,
public institutes, and people's communities in Beijing will have no
exception or privilege in paying taxes.
(China Daily August 6, 2007)
