Chinese government to add 10% extra tax for "super cars"

Luxury car brands such as Ferrari, Bentley and Rolls-Royce are facing an extra 10% tax in China as a result of a new law brought in by the country's communist government.

The new tax is due to affect vehicles which cost more than 1.3m yuan or £151,024, and is part of a wider programme by the Chinese government to reduce unnecessary spending and carbon emissions.

Automakers traditionally do very well in China, particularly in the high-end market, where many manufacturers tailor the design to meet Chinese demand.

The country's Ministry of Finance announced the tax change in a statement on Thursday.

"In order to guide rational consumption, and promote energy-saving emission reductions, the state Council has approved an additional consumption levy on ultra-luxury cars," the statement said.

President Xi Jinping has been the driving force of the crackdown on luxury spending from government officials in an effort to battle corruption.

The Xinhua news agency reported on Thursday that the government said officials should "travel without pomp, minimise impact on public life, and not have vehicles exceeding the set standards".