Russia imposes recycling tax on domestic car manufacturers

MOSCOW (Scrap Monster): The Russian administration has imposed recycling tax on domestic car manufacturers. Earlier, car manufacturers in the country were exempted from the tax, while companies exporting vehicles into Russia had to pay recycling tax. The EU and Japanese car industry had raised strong opposition to the Russian policy, which they pointed out was a strict violation of WTO rules.

 

According to the new regulation, the domestic car manufacturers are henceforth liable to pay the same recycling tax as foreign car manufacturers. The law imposes fees on all vehicles produced in Russia, Kazakhstan and Belarus.

 

Earlier in September, Russia had imposed recycling tax on cars shipped into the country. According to statistics, Japan’s car exports of new passenger cars to Russia had crossed nearly 320,000 during the initial eight months of the year. Following the imposition of tax, the Japanese car exports into Russia plunged significantly from September onwards.

 

As per the new regulation, every new car-either domestically produced or imported into the country would attract recycling tax ranging from nearly $480 to $3100.

 

Author: Paul Ploumis