Manturov announced an increase in the salvage tax on cars imported for resale from August 1

2023-07-07 14:18:17

From August 1, the government will index the recycling fee for cars and LCVs, trucks and buses that are imported into Russia by legal entities and individuals for subsequent resale. About it informed Deputy Prime Minister – Head of the Ministry of Industry and Trade of Russia Denis Manturov in an interview with Interfax.

A disposal fee is a one-time payment for each piece of equipment produced or imported into the country. The payment is positioned as an environmental fee, it is designed to compensate for the costs of future disposal of equipment.

“Taking into account all the opinions, it was decided to index the recycling fee for cars, light commercial vehicles, trucks and buses from August 1 this year. We also agreed with the proposal of the Federation Council: the indexation of the scrappage fee was approved both for legal entities and for individuals purposefully importing imported cars for resale,” he said.

The Deputy Prime Minister noted that a significant part of cars imported to Russia go into the “grey zone”, and resellers do not provide consumers with spare parts and after-sales service, which is why both the buyers and the dealership suffer. In total, more than 450,000 cars were imported into Russia in the first half of the year, half of which was in the used segment, he added.

At the same time, the increase in salvage fees will not affect residents of the Far Eastern regions who import a car for their own use, Manturov emphasized.

The Deputy Prime Minister did not name the amount of indexation of the utilization fee.

The recycling fee has been in effect in Russia since September 2012. Initially, it applied only to importers, but since 2014, the payment has also been introduced for Russian automakers. At the same time, industrial subsidies are provided for domestic producers, which compensate for the payment.

In early March of this year, the Cabinet of Ministers announced the deferment of the payment of the recycling fee for domestic automakers that have entered into special investment contracts (SPIC). In May AvtoVAZ” proposed to increase the scrap collection in the budget segment of passenger cars by almost 70%.