China's crackdown on luxury just went up a gear.
The tax will be applied to cars costing more than 1.3m yuan (£151,024) and is part of an effort to clamp down on luxury spending and reduce emissions, according to authorities.
As a result it won't impact on a huge number of models and may not put off wealthy buyers from an already expensive car.
Cars costing over 1.3m yuan were already hit with a 35 per cent import tariff, value added tax, a variable emissions tax and a purchase tax of 10 per cent too.
Car firms have been increasingly adjusting their luxury models to attract Chinese buyers: both Rolls-Royce and Aston Martin will be releasing SUV models in the next year, with large cars being favoured by Chinese buyers over sports vehicles.
In 2015, SUVs showed a 52.4 per cent rise in China, according to the China Association of Automobile Manufacturers (CAAM) and the market for luxury SUVs is expected to rise to 1.2m units by 2020.
The Ministry of Finance said the levy was passed "to guide rational consumption and promote energy-saving emission reduction" and will come into force today.
The country's ruling communist party have also announced new regulations for party officials against "pomp" as part of anti-corruption efforts and a bid to improve the government's image. State news agency Xinhua said officials must "travel without pomp, minimise impact on public life and not have vehicles exceeding the set standards".
Chinese President Xi Jinping has put a war on corruption at the centre of his agenda, with the crackdown on luxury spending forming part of his efforts.