China today will begin charging a 10 percent tax on cars such as the Ferrari GTC4Lusso, Bentley Bentayga and Aston Martin DB9 to combat conspicuous consumption and promote more efficient vehicles.
Buyers of autos costing more than $189,000 must pay the tax, the Ministry of Finance said in a statement on its website on Wednesday. The levy on "super luxury" vehicles is meant to lower emissions and save energy, the ministry said.
The tax is China's latest move to tone down spending by the country's growing ranks of wealthy consumers. While the additional cost will be a limited deterrent for people willing and able to spend vast sums on a car, it's another drag on these vehicles, which were just showing signs of recovery from President Xi Jinping's 2-year-old crackdown on corruption.
Manufacturers of ultraluxury vehicles have been shifting their lineups in recent years to appeal more to Chinese buyers, who generally prefer large autos over sports cars. Rolls-Royce and Aston Martin are both planning their first SUVs, following Bentley's lead with the Bentayga, which starts at $577,000 in China.