Analysts: China pollution tax ineffective – AP

From AP, via BusinessWeek (link):

A new Chinese tax on luxury cars — imposed in an effort to cut pollution — takes effect next weekend, but analysts say it should have little impact on either the environment or car sales.

Sport-utility vehicles and oversized luxury cars such as the Mercedes-Benz S600 make up a small share of China’s total vehicle sales, said Yale Zhang, an auto analyst for CSM Worldwide.

And buyers usually are wealthy drivers or the government.

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