The media learned about a sharp rise in prices for cars in 2018

The Ministry of industry and trade of Russia proposed to the government in 2018 to increase the recycling fee on cars on 87-125 per cent, against growth of excises will lead to a rise of car prices by 10 to 17 percent. On Monday, December 11, the newspaper “Kommersant”.

The newspaper’s sources claim that the collection of cars will increase depending on the engine size of the car. The source claims that the Ministry of industry and trade the document is already in the government.

In the Ministry, “Kommersant” reported that he had submitted to the government a draft decree on the indexation of car recycling fee depending on the categories and types of vehicles and their environmental performance, production volume and imports. It noted that in the cargo segment, the indexing will be from 15 to 40 percent, the average indexing the collection will be from 15 to 17.5 percent.

It is noted that the domestic concerns informally compensate for it, so more likely the measure will hurt net importers. At the same time, it is expected that it will touch and foreign corporations, the importing part models that have been produced on the built in Russian factories.

“Kommersant” has addressed for comments to the representatives of the automakers. One of the sources of the edition reported that employees are “in shock and disbelief”. He noted that disposal costs was “definitely not increased by 100% or more”. Also the interlocutor of the newspaper view that such a step would be detrimental to the trend of the recovery of the Russian car market, but also said that in 2018 the excise tax on cars will be increased, which will entail price increases. Another source of Kommersant said that the decision “totally unacceptable neither from the point of view of business planning, nor from the point of view of common sense.”

The representative of the company SBS Consulting Dmitry Babanskiy in conversation with the newspaper also expressed concerns with the impact of the growth of the recycling fee on the recovery of the car market and noted that the price of the machine with the increase of the excise tax in 2018 could rise on average by 10-17 percent.

In September it became known that the Ministry of Finance’s proposal to increase the size of the recycling fee on cars by 15 percent. According to estimates of the Ministry, such a move would bring the Treasury more than 28 billion rubles.

Currently, all automakers are required to pay a recycling fee. Initially, in 2012, he was introduced for foreign car manufacturers, importing cars to Russia or having in the country of Assembly power. However, this aroused the indignation of the countries-partners of Russia in the WTO, with the result that in 2014 the collection was extended to domestic automakers. However, the last state pays a subsidy that enables to cover the costs of payment of fee. The base rate for passenger cars is 20 thousand rubles per unit, for trucks and buses — 150 thousand. Its size can vary depending on vehicle weight, engine volume and year of issue.