China has been on pace to lead the world in consuming luxury goods for the past few years. With recent news of the country preparing to impose taxes on luxury products to help push forward economic reform, I’m sure spending will halt.
China Daily reported that luxury goods like expensive cars and yachts will be subject to higher taxation.
China National Radio reported that a 20% surcharge will be added on cars selling for 1.7 million yuan ($277,440) and up, citing an unnamed source within the China Association of Automobile Manufacturers.
China’s luxury-goods market is seen surpassing that of the U.S.. As it is, it accounts for around 12% of global luxury sales, according to a recent report byDeutsche Bank . Everyone loves China luxury. Demand for high-end products continues to grow, especially in the auto market where luxury vehicle sales are outpacing more developed markets, according to McKinsey & Company . They expect China luxury to account for 20% of global luxury sales in two short years.
Source: entmoney.com