China Votes Into Law 10 Percent Tax On Cars Costing 1.3 Million Yuan or More

Ferrari 488 Spider 11 photos
Photo: Ferrari
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According to the most recent rankings, the People’s Republic of China has the second most billionaires in the world. 62-year-old Wang Jianlin leads the list, with more than $33.3 billion to its name. Additionally, the Chinese also rank high in terms of millionaires. Hence, it’s no wonder why the well-to-do of China are spending big on nice cars like the pictured Ferrari 488 Spider.
The Government of China took note of this increasing appetite for four-wheeled extravagance and, unsurprisingly, decided to take measures. According to the Ministry of Finance, China voted a tax designed to temper consumer behavior toward buying expensive cars. Starting from December 2016, buyers of vehicles that cost 1.3 million yuan or more will be imposed with a 10 percent tax. At current-day exchange rates between Chinese yuan and United States dollar, that translates into $189,000 plus $18,900.

Ludicrous, isn’t it? Slapping a 10 percent tax on the rich who fancy “super-luxury vehicles" is nothing more than hogwash. The millionaires and billionaires of China couldn’t care less that they will have to pay more to quench their thirst for opulent cars. What’s more, many of the nouveau riche like to boast about how expensive their cars are. With this tax, China actually gave the wealthy yet another reason to flaunt their enormous wealth.

Be that as it may, I have this feeling in my guts that carmakers aren’t worried about the new tax. The best name in the biz, for example, sells more than 10 percent of its vehicles in China, Hong Kong, and Taiwan. Lamborghini also holds this area in high regard, as does Rolls-Royce and McLaren. Considering that Bentley can equip the Bentayga with a clock worth the equivalent of $160,000, China’s rich won’t really mind the newly voted fiscal burden.

On that note, Ministry adds that this plan is also meant "to guide the rational consumption and promote energy-saving emission reduction." Wait, what? I'm not the only one who things that China has much bigger problems than a someone revving his Ferrari until the valves start dancing on the hood.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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