16 Jul 2024 14:50

Decision on indexing Russia's vehicle scrapping fee in 2024-2030 might go into effect Oct 1

MOSCOW. July 16 (Interfax) - The decision to introduce gradual indexation of Russia's vehicle scrapping fee beginning in 2024 and to 2030 will go into effect on October 1 of this year, according to the draft government resolution prepared by the Industry and Trade Ministry and posted on the regulation.gov.ru website on Monday.

"Stipulate that this resolution goes into force from October 1, 2024," the document said.

Vehicles imported into Russia before this date will be subject to the current scrapping fee rate as long as the necessary documents are submitted to the customs authorities by November 1, 2024, it said.

Earlier on Monday, the Industry and Trade Ministry issued a press release announcing intentions to adopt a long-term plan for indexing the scrapping fee under which it will be hiked by 70-85% one time in the near future, and then raised by 10-20% annually in the period to 2030.

Public discussions on this draft resolution, which was published Monday evening after the ministry issued the press release, will begin today and continue until August 9.

"Gradual indexation of the scrapping fee may apply to cars, light commercial vehicles, trucks, buses, trailers and semi-trailers, as well as certain types of road and construction equipment," the ministry said in the press release.

Changes regarding imports will not affect individuals who independently import an automobile into Russia with an engine up to 3 liters for personal use in compliance with established rules for payment of customs duties and taxes, the ministry said.

The draft resolution calls for introducing a scale for the scrapping fee's indexation to 2030. This approach, which was previously proposed by the State Duma and Federation Council, will facilitate the establishment of predictable conditions for investment for both Russian and foreign automakers who work in Russia, the ministry said.