Ministry backs car utilization fee hike by 15% in 2018

MOSCOW, Sep 26 (PRIME) -- Russia’s Industry and Trade Ministry supports a proposed increase of the car utilization fee by 15% from 2018, Minister Denis Manturov told reporters on Tuesday.

“Not only for car producers, but on the whole for the car industry – both for imported cars and those produced in the country. Yes, we support this idea, because this is a source for financing programs, including of the car industry,” he said.

Business daily Vedomosti reported earlier in September citing a note to a draft 2018–2020 budget that the car utilization fee could grow 15% from 2018, bringing over 28 billion rubles of additional revenue to the budget. Total collections of the fee are to grow by 58.4 billion to 223.4 billion rubles in 2018, to 259.8 billion rubles in 2019, and 267.9 billion rubles in 2020.

In 2016, the government raised the utilization fee by 65% due to the ruble’s depreciation.

The utilization fee was introduced in 2012 after Russia joined the World Trade Organization and reduced car import duties. Almost all Russian car assembly plants receive subsidies comparable with the fee. If the system of subsidies remains, the hike in the fee will not affect prices of the majority of cars produced in Russia, while prices of imported cars will grow, Vedomosti said.

(57.5660 rubles – U.S. $1)

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