Duty on cars

In 2012, the import duty on cars will decrease to 25% (it was 30%). This is due to the fact that Russia joined the WTO at the end of last year and, perhaps, this is one of the main advantages that the β€œordinary” Russian population distinguishes. In addition, along with a decrease in duties on the import of foreign vehicles, motorists expect a decrease in car prices. Whether this will happen, let's try to figure it out.

In addition to lowering the duty on cars imported by dealers, a significant increase in the number of vehicles on our roads is evident. This is due to the fact that the customs duty on a new car should be reduced by the Russian side. Recall that the inflated prices were during the global crisis, as an anti-crisis measure. According to representatives of state authorities, in accordance with the agreements, the remaining tariffs this year can not be changed.

It should also be recalled that the duty on cars has been increased on cars as a measure of support for domestic manufacturers. This happened in 2009, when car owners had to pay 30% of the cost of imported vehicles, provided that the foreign car was not older than five years, while there was an extra charge for some engine characteristics. Along with this, payments for used passenger transport and freight increased significantly. And the duty on cars, whose age was more than five years, has increased by 80%.

So, as already mentioned, in 2012 the duty on cars will fall to 25%. In the future (over seven years) this figure will gradually decrease to 15%. It should be clarified that on tariff issues the main agreements were reached back in 2006, but everything was finally decided only in 2011. Russia joined the WTO at the beginning of December last (2011).

Now about the decline in more detail. The first year (2012) the duty on cars will be 25%, the next year - 24%, another year - 23% and over the next 4 years it will gradually decrease to 15%. At the same time, according to the leadership, a reduction in duty does not mean at all that the domestic auto industry will not be supported by the state. According to V. Putin, the government intends to protect the Russian automaker even after our country joins the WTO.

It was also stated that if the automotive industry finds itself in unequal competition, the government will find ways to protect it, namely, non-tariff regulation. It was emphasized that all countries that are members of the WTO use technical regulations.

Along with all that has been said, experts do not see any problems so far so that the duty on cars is reduced to 5%. However, regarding this issue, none of the officials said anything concrete. Well, as they say, we will live and see.

According to officials, a year later, the largest concerns that work in conjunction with Russian automakers should be fairly tightly entrenched in the country, which means they will begin to increase the share of their vehicles in our market. In this case, smaller participants will be crowded out. That is why imports will increase at outsider companies. It was reported that the duty on cars was reduced to 25% only as a formality when working with the WTO.

In conclusion, I would like to add that today many motorists hope that, due to customs duties, the prices for cars will also decrease significantly. But according to experts, this will not happen, since in the Russian market, pricing is affected primarily by demand, and not by the costs of transporting goods (cars). From this we can conclude that a reduced duty on cars will be very beneficial to manufacturers and dealers, but ordinary citizens-buyers will not notice any benefit for themselves. That is, prices will remain at about the same level as before.


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