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China introduces 10% extra tax on super cars

December 05, 2016

No of Views : 1397


An additional 10% tax has been introduced on "super cars", including Bentley, Rolls-Royce, Aston Martin and Ferrari. China is a key market for high-end carmakers. 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. Automakers have in recent years increasingly tailored their luxury models to appeal to Chinese buyers. It is part of a wider effort by Chinese authorities against flashy demonstrations of wealth, which has already hit other luxury brands.

Moreover, Ministry of Finance have given a following statement; "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,". 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. The country's ruling communist party on Thursday also issued new regulations for party officials against "pomp" as part of anti-corruption efforts. The tax goes into effect on Thursday, although observers say it is unlikely to be a major deterrent for the super - rich.