Regulations of the Exemption and Deduction of the Vehicle and Vessel Tax

1.       To save energy, protect environment, and relieve burdens of the low-income, vehicles and vessels that are not power-driven (except barges) are exempt from the Vehicle and Vessel Tax (hereinafter referred to as ??the Tax??). According to the Law of Road Traffic Safety, wheel-chairs used by the handicapped and electric bicycles are exempt from the Tax.

2.       To support agriculture and fishery, tractors and fishing boats used for catching and breeding are exempt from the Tax.

3.       To support national defense and meet the needs of the police and the army, vehicles and vessels used by them are exempt from the Tax.

4.       Regarding the consistency of relative policies, vessels that are liable to Vessel Tonnage Tax as regulated are exempt from  the Tax.

5.       According to international agreements and practice, vehicles and vessels used by embassies of contracted countries and branches of international institutions in China and their working staff  are exempt from  the Tax.

6.       To encourage and improve the public traffic of Shenzhen, vehicles and vessels for the use of public traffic are levied by half in 2007. As for the following years, it is to be confirmed by relative concrete policies.