The government will increase taxes on larger cars to 20% and target other luxuries in an effort to curb pollution and close the widening income gap, Bloomberg reported. The Ministry of Finance announced on its website that the levy on autos with an engine capacity of more than 2 liters would increase from 8% on April 1.Tax on cars with engines between 1 liter and 1.5 liters will be cut from 5% to 3%. Golf clubs, top-end watches and yachts will be hit with consumption tax for the first time. Premier Wen Jiabao pledged to tackle pollution and increase energy efficiency at the end of this year’s session of the National People’s Congress.
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