BEIJING: China has imposed an extra 10 percent tax on ultra high-end cars costing over 1.3 million yuan ($190,000) such as Lamborghinis and Ferraris, the government said, the latest step in a wide crackdown on conspicuous luxury consumption.
Under President Xi Jinping the Communist Party has overseen a sprawling campaign against graft and encouraged thrift among the country’s political and economic elites, targeting showy displays of wealth.
The new tax took effect Thursday and was intended to “guide rational consumption” and promote energy-efficient vehicles, the finance ministry said in a statement late Wednesday.
“The tax increase is a display of the government’s attitude of advocating frugality,” said Cui Dongshu, secretary-general of the Passenger Car Association, according to Bloomberg News.
China already taxes imported vehicles at a high rate, slapping a 25 percent tax on all foreign cars shipped to China.
The duties — and increased competition from cheaper domestic marques — have driven overall car imports down two years in a row, with 850,000 vehicles imported in the first 10 months of the year, down 6.4 percent from 2015, according to customs statistics.
But ultra high-end brands such as Ferrari have done well, with the Italian sports-car maker seeing a 26 percent surge in its second-quarter sales this year, with 160 units delivered.
The extra charge will likely hit Ferrari and brands such as Aston-Martin, Rolls-Royce, and Lamborghini, as well as top-end models of Mercedes and BMW.
Luxury carmakers have seen massive growth in China, the world’s largest auto market, despite the anti-corruption campaign.
They have also become potent symbols of the lavish lifestyles of the nouveaux riches during a time of surging wealth inequality.
Elite families often hire fleets of pricey cars for wedding processions, and wealthy second-generation heirs film themselves racing ultra-luxury sports cars in cities at night.
A notorious 2012 Ferrari crash that killed the son of a high-level official disrupted a once-in-a-decade party leadership change and precipitated his father’s downfall.
Reports said the son was accompanied in the car by two female passengers, one of them naked.
Some luxury dealers said they planned to stay open all night Wednesday to take orders before the tax came into force.
Passenger vehicle sales in China surged by an average of more than 12 percent annually from 2010 to 2015, but an economic slowdown has reduced the speed, with expansion dropping to 4.7 percent last year with total sales of 24.6 million.
China slaps new 10% tax on super-luxury cars
China slaps new 10% tax on super-luxury cars
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
