China introduces ‘super car tax’
China has introduced an extra 10% tax on super cars.
The tax affects cars costing more than 1.3m Yuan (£151,024) and is aimed at cutting lavish spending and reducing emissions.
Chinese authorities have commented saying it is part of a wider effort to tackle blatant demonstrations of wealth which has hit luxury brands.
China’s ruling communist party has issued new regulations saying 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.
In recent years China has become a big market for the luxury car sector. Rolls-Royce and Aston Martin are both planning the release of new SUV models next year in China as a response to a preference for large cars over sports cars.