China is adding a 10% tax on luxury cars, such as Ferrari, Bentley and Rolls Royce, as part of its crackdown on ostentatious spending. 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. The new tax, which will be levied at the point where buyers pay for their car registration, comes into effect from 1 July. China is a crucial market for "super cars" and over recent years car manufacturers have increasingly tailored these vehicles to appeal to the wealthier Chinese clients.
China is adding a 10% tax on luxury cars, such as Ferrari, Bentley and Rolls Royce, as part of its crackdown on ostentatious spending. The new tax, which will be levied at the point where buyers pay for their car registration, comes into effect from 1 July. China is a crucial market for "super cars" and over recent years car manufacturers have increasingly tailored these vehicles to appeal to the wealthier Chinese clients.