China introduces 10% extra tax on ‘super cars’
1 December 2016
- From the section Business
China has introduced an additional 10% tax on “super cars”, including Ferrari, Bentley, Aston Martin and Rolls-Royce.
The tax, affecting cars that cost more than 1.3m yuan ($189,000; £151,024), is aimed at curbing lavish spending and reducing emissions, authorities said.
It is part of a wider effort by Chinese authorities against flashy demonstrations of wealth, which has already hit other luxury brands.
China is a key market for high-end carmakers.
Automakers have in recent years increasingly tailored their luxury models to appeal to Chinese buyers.
Both Rolls-Royce and Aston Martin are planning to release SUV models in the next year, seen as a response to a Chinese preference for large cars over sports vehicles.
“In order to guide rational consumption, and promote energy-saving emission reductions, the state Council has approved an additional consumption levy on ultra-luxury cars,” a statement by the Ministry of Finance said.
The tax goes into effect on Thursday, although observers say it is unlikely to be a major deterrent for the super rich.
Chinese President Xi Jinping has made a campaign against corruption a centrepiece of his governing agenda, and has cracked down on luxury spending as part of that.
This post was written by FSB News