The Ministry of Industry and Trade has shown openness to a legislated pause on the transport tax, aligning with discussions in the Duma about easing fiscal pressure on vehicle owners. The proposal envisions a temporary exemption period of two to three years for citizens who have purchased a domestically manufactured car. Denis Manturov, who heads the Ministry and also serves as Deputy Prime Minister responsible for civil industry, voiced support for the idea, signaling a coordinated push within the executive branch to stabilize the domestic automotive market during the transition to newer vehicle technologies and manufacturing practices.
In communications with Deputy Vitaly Milonov, Manturov affirmed that the ministry could back the initiative, highlighting its potential to complement broader fiscal and industrial policies. The remarks, reported in Izvestiya from a July letter, underscore a collaborative approach between industry regulators and financial authorities as they explore ways to buffer the auto sector from short-term shocks and to sustain consumer confidence in locally produced vehicles.
Officials noted that the transport tax, introduced in 2003, has traditionally aimed to compensate for road maintenance and repair costs through vehicle ownership payments. The underlying logic is that road wear and infrastructure upkeep are partially offset by the revenue generated from the tax. However, the effectiveness and equity of this approach continue to be debated, especially as vehicle technology evolves and ownership patterns shift in North American and European markets. A temporary moratorium would provide relief to households while policymakers assess long-term funding needs for roads, weigh environmental considerations, and align tax policy with broader efforts to modernize the domestic automotive sector.
If adopted, the proposed measure could yield a meaningful, short-term stimulus for the domestic auto industry. Owners of new vehicles would see reduced annual tax obligations during the pause, easing upfront ownership costs and potentially accelerating demand for domestically produced cars. This, in turn, could help manufacturers scale production, stimulate supplier activity, and preserve jobs across the automotive supply chain. As with any fiscal intervention, the plan would require careful coordination with the Ministry of Finance to ensure budgetary impact is understood and managed over the agreed duration.
- Another supportive step under consideration includes reinstating a preferential car loan program to improve affordability for buyers and stimulate market activity.
- Public communications and official updates will continue to emphasize policy aims, with information disseminated through official channels and monitored for effectiveness.