China to Widen Consumption Tax Net to Cover More Luxury Cars

China says cars with retail price of 900,000 yuan (~$125,350) or more will be charged with a consumption tax, according to a statement from the Ministry of Finance.

• Previously, consumption taxes are applied to imported or manufactured luxury cars sold at 1.3 million yuan or more, according to 2016 rules
• Adjustments are aimed to guide reasonable consumption, statement says
• No consumption tax will be levied on selling second-hand luxury cars
• Effective July 20

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--With assistance from Phila Siu and Foster Wong.

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