(1) The scope of taxation
a. Taxable vehicles include automobiles, motorcycles, trolleys, trailers, and agricultural vehicles.
b. Taxpayers include all organizations and individuals that purchase a taxable vehicle in the People's Republic of China

(2) The vehicle and vessel purchase tax rate is 10%.

(3) The vehicle and vessel purchase tax is collected ad valorem using the following formula:

Tax payable = Total vehicle price X Tax Rate

Total vehicle price is the price paid to the seller plus all fees not included in the price, not including the value-added tax.

(4) The vehicle purchase tax must be paid before the vehicle may be registered at the administrative sector of the public security department.

(5) As of January 1, 2001, the Shanghai Administrative Office for the Collection of Supplementary Fees will temporarily collect the vehicle purchase tax. This office will be set up in the original collection office.
Tax rates for urban maintenance and construction

These taxes must be paid by organizations and individuals who pay the consumption tax, value-added tax, and business tax (excluding foreign and foreign-funded enterprises). The base for the tax is the amount of consumption tax, value-added tax or business tax payable. The rate for the tax differs in different administrative areas (city, county, town) depending upon where the taxpayer is located. The rates are:

(1) In a city, the tax rate is 7%

(2) In a county or town, the tax rate is 5%

(3) In rural areas, the tax rate is 1%