China holds tax on luxury

  The Chinese government could do more expensive Ferraris and Prada shoes, but that's probably not stop to spend to buy.

Luxury goods are booming to an important place in the history of consumerism in China. And as part of the tax reform, the country plans this year, with the first luxury tax they could be taken, said Kong Jingyuan, a General in the Commission of Development and Reform. The guidelines for tax reform were published by the Central Government on Friday.

China Daily reported that the luxury goods such as expensive cars and boats are taxed higher.

China National Radio reported that a 20% surcharge on the sale of cars for 1.7 million yuan ($ 277,440) will be added and citing an unnamed source at the China Association of Automobile Manufacturers.

The market for luxury goods in China is surpassing the United States. As it is, it represents about 12% of global sales of luxury, according to a recent report from German bank. Everyone loves China luxury. The demand for premium products is growing, especially in the automotive market, where sales of luxury vehicles are overtaken more developed markets by McKinsey & Company. They expect China Luxury represent 20% of global sales of luxury in two short years.

Chinese consumers are buying frenzy.

According to a Nielsen survey released earlier this month, scored China's consumer confidence index of 108 points, the same as the value for the previous quarter, but 15 points ahead of the global average. A score above 100 points indicates optimism among consumers. The index of the will of consumption in China has recovered to a high level of the new quarter over the same period, the Nielsen survey said.

And then there's the conspicuous consumption. Whether you are on a yacht Ferretti or expensive handbags sales in China Luxury higher percentage than the general retail sales, which rose in April, an increase of about 12% compared to last year.