Luxury cars hit by surtax

Move aims to curb lavish spending and cut auto emissions

China is levying an additional consumption tax on super luxury cars to curb lavish spending as well as automotive emissions. But analysts said the move is unlikely to have a major effect on car sales.

Starting on Thursday, cars with a price tag of 1.3 million yuan ($189,000) and above have had an additional 10 percent tax levied, the Ministry of Finance said.