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China Slaps Extra 10 Percent Tax on Luxury Cars

China will impose an extra 10 percent tax on high-end cars in a bid to rein in lavish spending and to reduce emissions, the Ministry of Finance has said, a potential headache for luxury car makers. The new tax rate will affect cars costing 1.3 million yuan ($188,852) and above, the ministry said late Wednesday, which could affect sales of high-end luxury brands such as Ferrari, Aston Martin and Rolls-Royce. China, spearheaded by President Xi Jinping, has been cracking down on...

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