Yesterday, the agenda of the Seventeenth Session of the Eleventh National People's Congress Standing Committee entered the second day, and the group reviewed the draft of the Taxation Law for Vehicles and Boats. The day before yesterday, the bill for the draft of the tax law for vehicles and ships was first submitted to the Standing Committee of the National People's Congress for consideration.
Some members of the Standing Committee of the National People's Congress discussed the draft tax laws for vehicles and boats during the group deliberation yesterday afternoon. A number of members considered that it is unreasonable to use the displacement tax as a basis for taxation. The tax on vehicles and boats is regarded as a kind of property tax, and it is more appropriate to collect according to the vehicle price.
Some members pointed out that the relevant provisions of the draft laws and regulations on travel and boat taxation are not able to truly achieve the goal of energy conservation and emission reduction. In addition, the representative suggested that the current increase in the draft tax code for vehicles and boats covers the majority of “car owners” and should widely solicit the opinions of vehicle owners.
Yesterday, the relevant person in charge of the Ministry of Finance attended the meeting to listen to the suggestions of the members and representatives and responded to some questions that the delegates were concerned about. After the meeting, the person in charge said that it will fully consider the suggestions and opinions of the members and actively cooperate with the revision of the draft laws on the travel tax.
- Members' opinions focus point 1
Whether or not the taxation according to displacement was reasonable was discussed in the group discussion yesterday afternoon, and some members of the Standing Committee of the National People's Congress discussed the draft tax laws for vehicles and boats. A number of members stated in their speeches that as a property tax, the taxation of vehicles and boats as a basis for tax calculation lacks reasonableness, and it is recommended that they be collected at the vehicle price.
Member Jiang Zhuangde said that if the tax on vehicles and boats is a concept of property tax, it should be levied on the basis of the value of the car. Because according to the concept of property tax, how much tax should be calculated based on the amount of property.
Uzhtu committee members gave an example, and now it is not fair to operate according to the displacement. For example, the displacement is the same as a 3.0L sedan, the domestically produced Hongqi Shengshi sedan is worth more than 300,000 yuan, the joint venture Audi is more than 700,000 yuan, 700,000 properties and 300,000. It is obviously unreasonable for the property to pay the same tax burden for one year.
Fang Xinjian said that the current draft of the tax law for vehicles and boats is based on emissions, and the reason is that “the number of vehicles and ships is huge and the evaluation of the value is difficult to operate.” Fang Xin believes that this reason is not sufficient. “How much money a car has, the invoice is clearly clear,” it is operational to evaluate the vehicles according to their value, and then to collect the taxes of the vehicles and boats according to the price bin. “Germany has a ready-made approach. It can be said that taxes are The operability of collecting taxes by valuation value is the same." Fang Xin also suggested that as an asset, the value of the vehicle should be depreciated with the useful life. For example, the value of the vehicle should be depreciated according to the prescribed tax rate in the first year, 10% after the second year, and the minimum tax must be collected in the 10th year. This is the practice."
Focus 2
Whether it can truly save energy and reduce emissions, Ren Maodong said that one of the purposes of the draft tax code for vehicles and ships is to encourage the development of small-displacement vehicles and promote energy-saving and emission reduction. However, it is doubtful whether the current draft design can be effective in practice. “Will the city be more congested after encouraging small-displacement cars? What more accidents?” He also said that the displacement of passenger cars is no longer the only criterion for judging whether they are environmentally friendly. For example, the application of new technologies such as turbocharging, smart gearboxes, hybrid powertrains, and lightweight vehicle bodies has enabled some large-discharge vehicles to reduce their emissions, that is, large displacements are not necessarily exhaust emissions.
Deng Xiuxin also mentioned that many “classic cars” have a large fuel consumption, low efficiency, and very serious pollution, even though their displacement is less than 1.6L. According to the draft, they can enjoy tax reductions for their vehicle and boat taxes.
In this regard, Jiang Zhuangde members agreed. He said that using a common engine with a 1.6-liter displacement, for example, would not necessarily be more energy-efficient than a 1.8-2.0 litre vehicle with turbocharging technology. Therefore, we must also pay attention to the changes brought about by technological progress and consider the correlation between energy saving and technological advancement.
Committee member Chen Yiyu believes that it is right to reduce the energy consumption of vehicles and vessels, or to exempt from taxes on vehicles and boats, but it is not appropriate to say that "high-energy-consuming and highly-polluted vehicles and vessels may be subject to additional taxes on vehicles and boats." "High-energy-consuming, highly polluting vehicles and ships should be strictly prohibited from use, cannot be adjusted with tax burdens, and the use of taxes to replace emission rights should not be encouraged."
Focus 3
Whether the tax increase of vehicles and boats is too large or not, said Fan Xulitai, if the draft tax code for vehicles and ships passed, the vehicle owners with 1.6 liters or more of displacement would have to pay a tax increase of 0.5 to 9 times. The draft stipulates that small-displacement vehicles will pay 360 yuan in tax annually, and the maximum tax paid for cars will be 5,400 yuan (600 yuan in the current year). Does tax increase apply to this rate?
Uritu committee members stated that under conditions of underdeveloped public transportation in urban roads in China, many people rely on private cars as vehicles. From the quantitative point of view, with 3% of luxury cars removed, most of the passenger cars below 90% are private cars, and most of them are concentrated at 1.0L-2.0L. As for vehicles under 1.0L, neither safety nor energy-saving and emission-reduction mean the future direction of the automotive industry. If it is regulated as a property tax, the value of cars with different displacements is only two or three times the value, but the difference in taxation between different sub-classes is almost ten times higher than the minimum, which becomes a punitive tax policy. Uritu suggested that before the introduction of the Taxation Law for Vehicles and Boats, extensive consultation should be sought.
Commissioner Jiang Zhuangde said that the draft of the Taxation Law for Vehicles and Vessels mentioned that the draft solicited opinions from 30 central ministries and commissions, 10 local governments, and 6 related industries and enterprises. He thought that he should also carefully listen to the views of consumers and owners. Make the draft of the tax law for vehicles and ships more comprehensive and consider more thoughtful.
