The Russian Auto Dealers Association (RoAD) asked the Ministry of Industry and Trade to postpone the start of the recycling fee indexation cycle from this year to 2025. Vedomosti writes about this with reference to a letter from RoAD dated July 23 addressed to the head of the department, Anton Alikhanov.
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Before the indexation of recycling collection begins, it is necessary to determine the types of cars, special equipment and trailers that are not produced in Russia, as well as create support mechanisms for the automotive industry, follows from the presentation to the letter.
In addition, dealers proposed linking the scrappage collection indexation program with the development strategy of the Russian automobile industry until 2035. The latest version of the strategy does not take into account the geopolitical situation that changed in 2022, RoAD emphasizes in a letter to Alikhanov. According to the association, the scope of indexation of fees for individuals and legal entities should also be equalized.
RoAD's appeal has been received by the Ministry of Industry and Trade and will be considered in the prescribed manner together with the industry community, a representative of the department said.
The draft government resolution “On Amendments to Certain Legislative Acts,” which is supposed to index the recycling fee for a wide range of wheeled and special equipment, was published by the Ministry of Industry and Trade for public discussion in mid-July. The expected entry into force is October 1, 2024. Prior to this, the tax on passenger cars was indexed from August 1, 2023, for a number of categories of special equipment – from July 1, 2024.
The project was based on proposals from the State Duma Committee on Industry and Trade, which were submitted to the government in May by Vladimir Gutenev (heads the committee). The essence of the proposals was to establish a procedure for the annual indexation of recycling collection, starting from 2024 to 2030 inclusive, for all wheeled vehicles and most types of special equipment.
For the most popular category of new passenger cars with an engine capacity of 1 to 2 liters, the tax should increase by 85% from October this year to RUB 556,200, and then by another 20% in 2025 to RUB 667,400. In 2030, the recycling fee in this category of vehicles will be 1.17 million rubles. Indexation for electric vehicles is not provided for this year, but in 2025 the fee for them will immediately increase 20 times to 667,400 rubles.
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