Luxury tax inadvisable due to cost of real estate, automobiles - econ ministry
MOSCOW. March 15 (Interfax) - The Russian Economic Development Ministry thinks it unjustified to impost a luxury tax dependent on the cost of real estate and automobiles, Economic Development Minister Elvira Nabiullina told the press.
The ministry is looking at the option an increased transport tax on automobiles not only dependent on horsepower, but also on vehicle age, Nabiullina said. The introduction of an increased tax on real estate, she said, is possible in two ways - depending on total space or on living space. The ministry has not yet come up with a final proposal.
The last of the ministry's working proposals for a luxury tax involve an increased transport tax on automobiles of more than 300 horsepower, the minister said. "It could be that we'll include age, as well. This is a question we are discussing now. We don't yet have a final decision as to whether the criterion of age is to be applied. The criterion of price we think inapplicable, because it is difficult to administer," she said.
As to the latest proposals on property taxes, Nabiullina noted that the issue is premises of more than 1,000 square meters. "The matter at hand is aggregate space. But we are now discussing that perhaps it would be worth it to introduce the criterion of amount of living space," she said. "We also don't want to introduce a price criterion," she said.