China’s government could introduce luxury tax
As part of China’s tax reform, the new Government could introduce the first ever luxury tax, said Kong Jingyuan, a director-general at the National Development and Reform Commission. The guidelines for tax reforms were published by the Central Government on Friday. China Daily reported that luxury goods like expensive cars and yachts will be subject to higher taxation.
China National Radio reported that a 20% surcharge will be added on cars selling for 1.7 million yuan ($277,440) and up, citing an unnamed source within the China Association of Automobile Manufacturers. China’s luxury-goods market is seen surpassing that of the U.S.. As it is, it accounts for around 12% of global luxury sales, according to a recent report by Deutsche Bank.
adapted from Forbes