China slaps extra 10% tax on super-luxury cars
BEIJING: China has imposed an extra 10% tax on ultra high-end cars costing over 1.3 million yuan (RM847,800) such as Lamborghinis and Ferraris, the government said, the latest step in a wide crackdown on conspicuous luxury consumption.
The new tax took effect yesterday and was intended to “guide rational consumption” and promote energy-efficient vehicles, the Finance Ministry said in a statement issued here late Wednesday.
China already taxes imported vehicles at a high rate, slapping a 25% tax on all foreign cars shipped to the country.
The duties – and increased competition from cheaper domestic marques – have driven overall car imports down two years in a row, with 850,000 vehicles imported in the first 10 months of the year, down 6.4% from 2015, according to Customs statistics.
The extra charge will likely hit Ferrari and brands such as AstonMartin, Rolls-Royce, and Lamborghini, as well as top-end models of Mercedes and BMW. – AFP