Russian government will increase the car utilisation fees

The rise in car utilisation fees will go well over 15% in some segments from February onwards, as told by the Vice Prime Minister: Arkady Dvorkovich previously. According to the protocol of the meeting, held by the Vice Prime Minister on 11 January, the fee will increase by 16% for automobiles with up to 1 litre engine, 90% for 1-2 litres and 49% for 2-3 litres. The vehicles with 3-litre engine capacity and above won’t be affected from the increase. The fee index for electric cars will be 14.8% and 15% for light commercial vehicles (LCV), excluding the 2.5-3.5 tonnes category (GAZelle models of GAZ Group and their rivals), which will be subject to 52% rise.

The Ministry of Industry and Commerce had to submit a draft resolution on fee levels, agreed with the Ministry of Economy, to the government on 15 January. No comment has been made by the Ministry of Economy on the subject. The Ministry of Industry and Commerce has stated that the project is going through the finalisation process at the government organs. As stated by the office of Mr. Dvorkovich yesterday, the document has not arrived yet.

According to the protocol, the Ministry of Industry and Commerce, the Ministry of Economy and the Government Analytical Centre will monitor the effects of the measures on the market during the first half of the year. The aforementioned ministries and the Ministry of Finance will also cancel VAT payments on subsidies received by car manufacturers for the compensation of actually incurred costs, during the preparation process of the next amendments to the Tax Code. As explained by the sources, the measures in question are the industrial subsidies in particular. According to one of the sources, the subsidies will be subject to VAT as a result of changes to the Tax Code, a step which would outrage car manufacturers.

Source: RusAutoNews.Com