China slaps ex­tra 10% tax on su­per-lux­ury cars

The Sun (Malaysia) - - SUNBIZ -

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

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