Buyers of vehicles such as the Bentley Bentayga and the Ferrari GTC4Lusso will be paying more for their luxury cars; light vehicles priced at 1.3 million yuan (RM838,610) will be subject to an additional 10% tax, which is intended to “guide reasonable consumption”, lower emissions and save energy, according to China’s ministry of finance. This move comes as China’s population of wealthy consumers continues to grow, and is meant to tone down spending, according to Automotive News.
“The tax increase is a display of the government’s attitude of advocating frugality. The increase in taxes on luxury cars may help make the extension of the small-car tax cut more likely given it is in line with the government policy of promoting cars with better fuel economy,” said Cui Dongshu, secretary-general of the Passenger Car Association.
The increase in tax is unlikely to have significant impact on mainstream luxury brands such as Audi, BMW and Mercedes-Benz.
“The majority of our business will not be impacted. But because this was just announced yesterday, we are still evaluating to see what impact we might see on our business,” a Beijing-based BMW spokesman said. Both Audi and BMW representatives in China confirmed that the impact is minimal because only a small portion of their respective products are priced above the 1.3 million yuan threshold.
Meanwhile, the ultra luxury segment – which includes Rolls-Royce and Aston Martin – is in such rarefied demographics that the 10% hike is unlikely to pose much of a deterrent to those who are already able and willing to spend the requisite large sums on automobiles.
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Malaysia should do this too. Infact, cars below RM100k should be tax free. And cars above RM200k should be taxed heavily.
Currently, the kerani who struggles in life have to pay heavy tax on his Axia and Myvi whilst the rich Datuk or Tan Sri pays more or less the same about of tax for his BMW or Mercedes. Slighlty more only.
Then the Datuk and Tan Sri cheat on his road tax also. Bentley got 6750cc and road tax is RM18,000 per year. But every Bentley in KL get road tax from Sabah and Sarawak for RM3000. So each Bentley, gomen loses RM15k per year on road tax alone. In Malaysia, the rich seem to be cheating the gomen left right and centre. Even their Porsche and Ferrari come down also under declare and year of make is underdeclared also as older car. Made in 2012 but they say 2010.
It is high time for Gomen to tax luxury cars even higher and abolish tax on cars below RM100k to help Malaysians. We are all struggling.
Tax the rich. So tak kesah
Bodoh lah you.
you do realised that the income earned is already tax at a higher bracket? and when spending tax somemore at a different bracket? you will just encourage more tax evasion.
the poor is poor for a reason. they are stupid and lazy like you.
please don’t take china policy and impose it here ya. their 1 suburb is already bigger than boleh land.
go ride a bike or public transport if cannot afford car. government should increase price for all cars so that we see fewer on the road.
The tongkat mentality thanks to the ruling government.
They have bred and groom people like you very well to ensure they continue to stay in power :)
Cries for fair election but when comes to their own personal agenda or benefit they want unfair advantages
Any difference with those cronies and those who take some one elses money into their own personal account?
What you are suggesting is like taking some one’s money for your own personal benefit; so you can buy cheaper car
Now I know why the ruling government is still up there, its low class people like you who put them up
Tax the rich.
@Kunta bin Kinte, I see another favorable side, marques willing to sell below RM100K and those above comes with even better safety/gadget features than those below RM100k but the downside in all this is lower tax collection.
is so easy to overcome the 100k limit. just sell car at below 100k and charge 10k per service. or no warranty.
or sell car kosong spec. even aircond is option. so don’t complain if car don’t have abs and airbag ya just to fulfill the price.
agree on this
Tax the rich is not the issue, the overall problem is M’sia car tax too HIGH with no alternative complete public transport mode. Its good tax money from Axia buyer whereby physically Axia buyer income don’t incur income tax range, by imposed higher car tax or GST, no one can escaped from gov tax, theses all tax/GST is collect from the poor for rich gov cronies. Agreed …….???
Nope. U just ignored MRT, new LRTs, BRT, Rapid new buses and even uber/grab. R u even living in MY, if u can miss them?
since when does klang valley equal whole of Malaysia ? u think every malaysian has access to MRT, LRT , BRT , rapid new busses ?
still cheaper than malaysia tax ^^
Lucky Malaysia never implement this. Bentayga only RM2m+. “Slight” difference only compared to UK price £160k(RM900k).