BEIJING (AFX) - Bayerische Motoren Werke AG (BMW) said it has raised prices of its cars in China due to a new vehicle consumption tax in the country, effective from April 1.
Prices of more than 20 BMW models have been raised by between 4,800-289,600 yuan, according to XFN-Asia's calculations.
The company did not provide a percentage figure for the price hikes.
BMW sold 23,595 cars in the mainland last year, 15,300 of which were produced in China by BMW Brilliance Automotive, its joint venture with Brilliance China Automotive Holdings Ltd.
China's Ministry of Finance announced last month that it was lowering consumption tax on cars with smaller engines while increasing rates on bigger vehicles.
According to the new tax rules, as of April 1, the consumption tax on 1.0-1.5 liter vehicles will be lowered to three pct from five pct.
Vehicles with engines of 2.0 to 2.5 liters will be subject to a nine pct sales tax, those between 2.5 and 3.0 liters will see the figure rise to 12 pct, while 3.0 to 4.0 liter engines will be charged 15 pct and those over 4.0 liters as much as 20 pct
source: http://www.forextelevision.com/FT/AFX/ShowStory.jsp?seq=92009
Prices of more than 20 BMW models have been raised by between 4,800-289,600 yuan, according to XFN-Asia's calculations.
The company did not provide a percentage figure for the price hikes.
BMW sold 23,595 cars in the mainland last year, 15,300 of which were produced in China by BMW Brilliance Automotive, its joint venture with Brilliance China Automotive Holdings Ltd.
China's Ministry of Finance announced last month that it was lowering consumption tax on cars with smaller engines while increasing rates on bigger vehicles.
According to the new tax rules, as of April 1, the consumption tax on 1.0-1.5 liter vehicles will be lowered to three pct from five pct.
Vehicles with engines of 2.0 to 2.5 liters will be subject to a nine pct sales tax, those between 2.5 and 3.0 liters will see the figure rise to 12 pct, while 3.0 to 4.0 liter engines will be charged 15 pct and those over 4.0 liters as much as 20 pct
source: http://www.forextelevision.com/FT/AFX/ShowStory.jsp?seq=92009