Recycling tax on Russia’s domestic cars

Russia – Russia has enforced a law that requires domestic car-makers to pay the same vehicle recycling tax as foreign manufacturers. The move follows complaints from both the EU and Japan last summer that Russia was violating the World Trade Organization’€™s non-discrimination rules by giving preferential treatment to its domestic cars.

According to a Japanese media report, the revised law imposes the fee on all vehicles, including those produced in Russia as well as in two countries with which it shares a customs union, Kazakhstan and Belarus. Previously, these had been exempt from the tax ranging from around US$ 480 (Euro 350) to US$ 3100 (Euro 2300) per new vehicle.

In the first eight months of 2012, Japan shipped around 320 000 new passenger cars to Russia but exports plunged following the introduction of the recycling fee in September of that year, according to the Japanese Ministry of Trade.