PROVISIONAL REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON VEHICLE AND VESSEL USAGE TAX

(ISSUED 15 SEPTEMBER 1986 BY THE STATE COUNCIL)

SUBJECT: TAXATION

ISSUING-DEPT: STATE COUNCIL OF CHINA

ISSUE-DATE: 09/15/1986

IMPLEMENT-DATE: 10/01/1986

TEXT:

[Article 1] All obligatory taxpayers (hereinafter referred to as taxpayers) of Vehicle and Vessel Usage Tax, who are the representatives of units or individuals who possess and also use a vehicle or vessel within the territory of the People’s Republic of China, shall pay Vehicle and Vessel Usage Tax in accordance with the provisions of these Regulations.

[Article 2] Levies for the use of a vessel will be calculated in accordance with the “Vessel Tax Schedule” attached to these Regulations. Levies for the use of a vehicle will be determined by the provincial, autonomous region or directly administered municipal people’s government within the scope stipulated in the “Vehicle Tax Schedule” attached to these Regulations.

[Article 3] The following vehicles or vessels are exempt from Vehicle and Vessel Usage Tax:

(1) vehicles or vessels for the private use of State organs, people’s organizations and the armed forces;

(2) vehicles or vessels for the private use of institutions whose operating expenses are allocated by State finance departments;

(3) fishing vessels with a dead weight capacity of less than one tonne;

(4) landing stages and pontoons specifically for the loading and unloading of passengers and goods and the storage of goods;

(5) various types of fire fighting vehicles and vessels, street sprinkler vehicles, prison vans, police vehicles, vehicles used in epidemic prevention, ambulance vehicles and vessels, garbage disposal vehicles and vessels, vehicles and vessels used in port work and vessels used in construction;

(6) vessels which pay vessel tonnage tax in accordance with the relevant regulations;

(7) other vehicles or vessels approved by the Ministry of Finance as tax exempt.

[Article 4] With the exception of those included in Article 3 of these Regulations, taxpayers who have bona fide difficulties in meeting tax payments may enjoy a reduction or exemption from Vehicle and Vessel Usage Tax for a set period to be determined by the provincial, autonomous region or directly administered municipal people’s government.

[Article 5] The levying of or exemption from Vehicle and Vessel Usage Tax will be determined by the provincial, autonomous region or directly administered municipal people’s government where individuals who possess bicycles or other non-motorised vehicles or vessels for private, non-business use are concerned.

[Article 6] Vehicle and Vessel Usage Tax will be collected annually with payment by instalments. Payment deadlines will be determined by the provincial, autonomous region or directly administered municipal people’s government.

[Article 7] Control of the collection of the Tax will be carried out in accordance with the provisions of the “Provisional Regulations of the People’s Republic of China on the Control of Tax Payment Collection”.

[Article 8] Vehicle and Vessel Usage Tax will be collected by the taxpayer’s local tax organ.

[Article 9.] The Ministry of Finance is responsible for the interpretation of these Regulations. Detailed implementing rules will be formulated by the provincial, autonomous region or directly administered municipal people’s government and a copy will be filed with the Ministry of Finance.

[Article 10] These Regulations will be effective from 1 October 1986.