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.”

MORE ON FORBES.

Recommended for you

As Trump targets China, EU and China open EV tariff negotiations

WeRide unveiled its L4 Robobus at CES 2024, providing demo rides

BYD-Mercedes Backed Denza D9 Electric MPV Officially Launched in China