China to impose extra 10% consumption tax on luxury cars

An extra 10 percent consumption tax will be imposed on “super luxury” vehicles to be sold in China, said the Chinese Ministry of Finance. Buyers of automobiles costing more than 1.3 million RMB ($188,852) will be hit with the tax starting Dec. 1.

This tax is China’s latest move to combat conspicuous consumption and promote energy conservation. According to the notice issued by the ministry, passenger cars and light commercial passenger vehicles selling for 1.3 million RMB (excluding VAT) and above will also be subject to another 10 percent consumption tax in the retail sector, in addition to the current consumption tax.

 

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