A recycling fee could double

12 December 2017

Indexing will occur in early 2018

In November the Russian car market continued to recover as sales have increased by 15 %. Experts attribute the positive trend with a number of factors, but not with the welfare of the population. Often referred to pent-up demand, adapting to new prices and the expectation of another round of price hike. In particular, the cost of new cars may increase due to a substantial increase in the recycling fee.

Relevant data with the newspaper "Kommersant" shared an anonymous source. According to him, the Ministry of industrial trade submitted to the government a proposal to increase car recycling fee for cars in 2018 87-125 %. Experts expect that from-for it retail prices will eventually go up by 10-17 %.

For the first time recycling was introduced in 2012. Technically, he should compensate the state expenses for the disposal of old cars. However, in reality this is rather a compensation for the reduction of import duties after Russia's accession to the WTO. Initially, the fee was intended to pay only the importers, however, after complaints to the WTO court on the part of some countries in 2014, this rule was extended to all manufacturers. Simultaneously, the domestic brands, the government began to issue industrial subsidies deemed to be payment collection. Last year the payments were increased by 65 %, which was attributed to the depreciation of the ruble. At the same time, some market participants considered it compensation another tariff reductions under accession to the WTO.

Under current legislation, a recycling fee when buying a new car is between 17 to 200 up to 110 000 rubles depending on engine size.

At the moment the official position of the government and the Ministry of industry and trade concerning improvement of the collection remains unknown. Earlier in the explanatory note to the budget it was planned to lift it for passenger cars by 15 %.

Interviewed by "Kommersant" the participants of the market negatively perceived information about a possible increase in utilsbora. They note that a marked increase in the prices of new cars can stop the emerging trend on increased sales of new cars.