China has launched a new additional 10% consumption tax on expensive cars, dubbed the ‘supercar tax’ by Chinese media. The tax came into effect yesterday December 1.
The tax affects any car that has a retail price of more than 1.3 million yuan ($190,000). It comes on top of the standard consumption tax, which depends on engine size. The new tax affects only imported cars. In a statement the Ministry of Finance said (translated): “In order to guide rational consumption and promote energy saving and emission reduction, the State Council [cabinet] has approved a consumption tax on luxury cars.”