The nullification of duties on electric vehicles will not be approved by the Russian Ministry of Industry and Commerce in the medium term. As stated by the ministry to RNS, such an action would have a negative effect on the development of electric vehicle production in Russia.
“A strategy is being formulated as a possible support measure for the development of electric transport, which proposes stimulation of demand by the state, creation of favourable conditions for the production of electric vehicle components, the development of infrastructure, as well as support for research and development on electric transport. The nullification of import customs duties on electric vehicles in the medium term will have a negative effect on the production capabilities” – as stated by the ministry.
A proposal on the extension of the time period of the duty-free state of electric vehicles by a year was approved by the Ministry of Industry and Commerce, as told by a source from the ministry to RNS last November and the relevant appeal was sent to the Ministry of Economic Development. The current rate of duty is 15%, as stated by the ministry to RNS. The Ministry has not approved the nullification of duties on electric vehicles.
The zero rate of the import duties on the electric engine passenger cars has ceased to operate at Eurasian Economic Union countries as of 1 September.
As noted by the Ministry of Industry and Commerce, according to the optimistic scenario on the development of the Russian market, the share of electric vehicles in total sales may reach 1-1.5% by 2020 (15-25,000 units), as a result of the implementation of the strategy formulated for the development of automotive industry.
The ministry has added that a demand stimulation programme for electric transport, including electric cars, is currently being implemented as a support for the production of electric vehicles and the development of the electric transport market. The programme will be in force between 2018 and 2020. An annual amount of 1.5 billion rubles has been allocated on the programme from the federal budget, as stated by the ministry.