China Car Association Official Supports Luxury-Tax Adjustment

The average price of a luxury car that cost 1.3 million yuan ($181,000) in previous years now sells for an estimated 900,000 yuan following price cuts, Cui Dongshu, secretary general for the China Passenger Car Association, writes in an article.

• As such, Cui writes that it is “reasonable” to adjust the base at which super-luxury cars subject to higher tax
• Cui says the tax-rule adjustment doesn’t mean a larger number of luxury cars will be subject to consumer-tax collection
• NOTE: China’s Ministry of Finance announced earlier it will lower the bar for consumer-tax collection of super-luxury cars to 900,000 ...