10% ex­tra tax on ‘su­per cars’

Malta Independent - - WORLD -

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), 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 went into ef­fect yes­ter­day, 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.

The coun­try’s rul­ing com­mu­nist party on Thurs­day also is­sued new reg­u­la­tions for party of­fi­cials against “pomp” as part of anti-cor­rup­tion ef­forts.

Top of­fi­cials should “travel with­out pomp, min­imise im­pact on public life, and not have ve­hi­cles ex­ceed­ing the set stan­dards”, the of­fi­cial Xin­hua news agency re­ported.

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