China Slaps New Tax on Super-Luxury Cars

Cars costing more than RMB1.3 million will now be subject to an additional 10 percent tax, the Ministry of Finance recently announced. 

Luxury imported vehicles were already subject to a 35 percent import tariff, a value added tax, a variable emissions tax and a purchase tax of 10 percent.  

This move is the latest from Beijing to clamp down on luxury. As China’s wealth explodes, two irreconcilable factions have arisen: the middle class with its increased spending power and a president who has proven tough on corruption and the glamorization of wealth. 

But when there are fu'erdai [second generation rich] who can afford multiple Apple watches for their dogs, it's unclear what effect — if any — this additional tax will have. 

[Image via Jing Daily]