New vehicle purchase tax policies come into effect in China

A series of new tax policies are coming into effect in China this month, including the Measures for the Administration of Vehicle Purchase Tax Collection. According to the new legislation, new tax policies will be based on the market, rather than on the manufacturers of the vehicles in question.

According to the legislation, buyers of new vehicles will have to send an application to the relevent authorities within 60 days of purchase or import. Unlike before, when vehicle taxes were based on the vehicle purchase, they will now be based on market conditions as decided by the State Administration of Taxation. The new policies are hinted towards being more favorable for consumers. The policies also allow buyers of vehicles to apply for lower taxes if their vehicle is found to have a higher tax rate than other similar sized vehicles.

At the same time, stricter policies for imports and exports of child seat safety standards are also being implemented. The new standards will classify seats destined for imports and exports into different categories. The government hopes that these standards will help improve the safety of child seats and prevent injuries and facilities in the case of accidents. Safety seats that fail to meet standards will be restricted from being manufactured, sold or imported.

In other news, the city of Shenzhen in Guangdong is restricting usage of vehicles with non-Shenzhen plates from driving on some of the city’s roads during peak rush hours of 7:00 am to 9:00 am in the morning and 5:30 pm to 7:30 pm in the evening. However the policies will not apply to special vehicles such as police cars and ambulances, as well as vehicles with Macau or Hong Kong license plates.