The Ministry of Industry and Trade of Russia proposes to significantly increase the utilization fee on cars from January 1, 2020, in order to maintain a barrier to car imports after the next - and last - reduction in duties on the import of finished cars into the Russian Federation. On average, tax rates, according to preliminary calculations, may increase by 80%, in the passenger segment - by 110%.
The increase in rates will allow keeping the barrier for the import of new cars to Russia at the level of 30% of the cost, that is, at the level of the duty rate before the reduction.
Since 2014, the utilization fee has been paid by all market participants in the Russian Federation, however, the government provides industrial subsidies to the domestic producer. Compensation occurs automatically with each increase in collection.
The calculations of the Ministry of Industry and Trade must be approved by the Federal Customs Service of the Russian Federation, which will take into account the excise factor, which is calculated on the power of the car (in horsepower), performing, like the utilization fee, the role of a barrier to imports.
The rise in the cost of imported cars against the background of an increase in collection rates can lead to an increase in prices for Russian-made cars, because there is no formal direct compensation for the utilization fee.
