SHENZHEN'S 1 million car owners can expect to pay twice the present vehicle tax from the beginning of next month, provincial authorities have announced.
The tax on average-sized private cars, or with a maximum of nine seats, will rise from 240 to 420 yuan this year, a 75 percent increase. The tax on minicars with an engine size of less than 1,000 cc will remain at 240 yuan, while the tax on vans with 10 to 19 seats will rise from 240 yuan to 480 yuan. Coaches with more than 20 seats will see their tax double to 600 yuan a year.
The vehicle tax will generate an estimated 420 million yuan of revenue a year for local taxation authorities.
It follows the Central Government's announcement Monday to raise the ceiling of the 21-year-old tariff.
A Shenzhen car owner surnamed Wan said she wasn't happy.
"Everything is going up from gasoline prices to parking fees. The price for No. 93 gas jumped 0.12 yuan per liter after the municipal government applied a compulsory China III standard earlier this year. Local drivers also have to pay an average of 600 yuan more a year after the parking fees increased in the city last September,"Wan complained.
A spokesman for the Shenzhen coach station said that the tax hike is unlikely to affect bus ticket prices, but he admitted it did put more pressure on local transport firms.
To avoid tax evasion, drivers will now be required to pay the tax to their vehicle insurers along with the insurance premium.
Last year, more than 35 percent of Shenzhen's drivers dodged the vehicle tax, accounting for some 60 million yuan.
Shenzhen drivers, however, will still pay less than motorists in Beijing. The tax for private car owners in the capital will rise from 360 to 660 yuan annually.