There is no need to pay tax when buying car insurance. The tax referred to in compulsory insurance is the vehicle and vessel tax that must be paid every year. The national tax reform has merged the withholding and collection of vehicle and vessel tax and the handling of compulsory traffic insurance.

According to Article 10 of the "Interim Regulations of the People's Republic of China and the State on Vehicle and Vessel Tax", insurance institutions engaged in compulsory motor vehicle traffic accident liability insurance business are the withholding agents of motor vehicle and vessel tax and shall act on behalf of the motor vehicle vehicle and vessel tax in accordance with the law. Collect and pay vehicle and vessel taxes. The standards for collection and remittance fees paid by tax authorities to withholding agents shall be formulated by the finance department and taxation department under the State Council.

Article 11 When the withholding agent of motor vehicle and vessel tax collects and pays vehicle and vessel tax in accordance with the law, the taxpayer shall not refuse.

Extended information:

Article 1 of the "Interim Regulations of the People's Republic of China on Vehicle and Vessel Tax" Within the territory of the People's Republic of China, vehicles and vessels (hereinafter referred to as vehicles and vessels) ) is a taxpayer of vehicle and vessel tax and shall pay vehicle and vessel tax in accordance with the provisions of these regulations. The vehicles and vessels mentioned in these regulations refer to vehicles and vessels that should be registered with the vehicle and vessel management department according to law.

Article 3 Disembarking trains and vessels are exempt from vehicle and vessel tax:

(1) Non-motorized vehicles and vessels (excluding non-motorized barges);

(2) Tractors;

(3) Fishing and breeding vessels;

(4) Vehicles and vessels exclusively used by the military and armed police;

(5) Police vehicles;

(6) Ships that have paid tonnage tax in accordance with relevant regulations;

(7) Foreign embassies and consulates in China that should be exempted from tax in accordance with the relevant laws of our country and the provisions of international treaties that our country has concluded or participated in. Vehicles and ships of consulates and international organizations in China and their relevant personnel.

Baidu Encyclopedia - Interim Regulations of the People's Republic of China on Vehicle and Vessel Tax