The executive meeting of the State Council held at the end of November reviewed and approved in principle the Bill of the People's Republic of China on the Implementation of the Regulations on the Taxation of Vehicles and Boats (Draft) (hereinafter referred to as the "New Tax Code on Vehicles and Vehicles"). The new taxation laws for vehicles and ships will refine the scope of taxable vehicles, clarify the principles that should be followed by the “provincial government to determine the specific applicable tax for vehicles,” and detail the provisions for tax incentives. It is intended to be implemented on January 1 next year. The taxation of vehicles and vessels by way of exhaust emissions still raises many controversies: The tax on vehicles and boats is a property tax, which should be levied according to the value of automobiles. It is difficult to achieve the purpose of promoting energy saving and emission reduction by expulsion.

With different displacements, a 90-fold difference in taxation rate is stipulated in the Taxation Law for New Passenger Ships. Passenger car and boat taxes are divided into seven levels according to displacement, and the taxation of auto products with a displacement of 1.6 to 2.5 liters (inclusive) is the largest, reaching a 300 yuan -400 yuan. For vehicles with a displacement of 3.0 liters or more, the relatively high taxation standard in the first-year review is still maintained. In addition, the above-mentioned new tax law for vehicles and ships only stipulates the range of tax amounts for different types of vehicle emissions. The specific implementation measures must be formulated by the governments of provinces, autonomous regions, and municipalities directly under the central government.

According to the new travel tax rules, the tax base for passenger cars, boats, and boats will be from the lowest 60 yuan to 1.0 yuan below 1.0 liters. Above 0 liters, the highest of 5,400 yuan, the biggest difference is 90 times. According to estimates, it accounts for about 87% of the current total number of passenger vehicles. The passenger tax burden on passenger cars of 0 liters or less will not increase, which will have little impact on most consumers.

Controversy still exists: Is the discharge equivalent to the value? The new tax law of the new vehicle has started to raise doubts since it began collecting opinions on the draft of the first instance.

The biggest controversy is that it is unfair that the new tax law on vehicles and boats will continue to be imposed on the amount of exhaust gas. Xiong Chuanlin, deputy secretary-general of the China Association of Automobile Manufacturers, said that the displacement of passenger cars is not the only criterion for judging whether they are environmentally friendly, but low-grade cars with small displacements will increase the emission of harmful substances. He believes that the tax on vehicles and boats is a property tax and should be taxed according to the value of vehicles and vehicles. Vehicles have the characteristic of depreciating gradually, and taxable prices should also be decremented year by year.

In this regard, the Ministry of Finance stated that there is a positive relationship between the volume of car exhaust and value, and the correlation is as high as 97%. The higher the value of the vehicle, the higher the exhaust volume. It is reported that countries such as Britain, Germany, and Japan are also taxed on the basis of emissions. "Since the nature and basis of taxation are still not clarified, taxation is implemented on a one-size-fits-all basis. It is difficult to guide consumers to use energy-saving and environmentally friendly small-displacement vehicles. Obvious effect," said industry researcher Sun Shiqing.