China hikes tax on 'super cars' amid luxury crackdown

SHANGHAI/BEIJING (Dec 1): China will impose an extra 10 percent tax on super cars and other luxury models costing 1.3 million yuan ($0.27 million) and above, in a bid to rein in lavish spending and to reduce emissions, the ministry of finance has said.

The new tax rate will potentially effect pricing for top of the range models from carmakers like BMW, Daimler AG's Mercedes-Benz and Audi AG, as well as super high-end brands like Ferrari, Aston Martin and Rolls-Royce.

China, spearheaded by President Xi Jinping, has been cracking down on ostentatious shows of wealth over the past few years, a drive that has hit domestic luxury sales from premium alcoholic spirits to handbags.

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