China has slapped extra tax on super luxury cars such as Ferraris, Bentleys and Lamborghinis at the same time as the Communist party imposes new rules against conspicuous consumption by officials, part of a four-year-old campaign to fight corruption and improve the government’s image.
The treasury ministry on Thursday announced a new 10 per cent tax on any car costing more than Rmb1.3m ($190,000). The new tax is meant to “guide reasonable consumption”, lower emissions and save energy, the ministry said.
On the same day, state news agency Xinhua unveiled new rules for officials saying they should “travel without pomp, minimise impact on public life, and not have vehicles exceeding the set standards”. It was not clear whether the double announcement was a deliberate move by the government or a coincidence.