A high-ranking Russian official indicated that the government is weighing changes to the recycling fee applied to cars, with a decision expected soon. The information comes from an interview cited by TASS, where Denis Manturov, Deputy Prime Minister and head of the Ministry of Industry and Trade, explained that the issue is under active discussion within the government and that a careful assessment of advantages and drawbacks would guide the next steps.
The recycling fee is a levy assessed on each vehicle, self-propelled unit, or chassis that is either imported into the Russian Federation or produced domestically. This charge was first introduced in 2012 in the wake of Russia joining the World Trade Organization, and its calculation is anchored to a base rate currently set at 20,000 rubles.
For individuals, the final amount is derived by multiplying the base rate by specific factors: 0.17 for new cars and 0.26 for imported vehicles older than three years. When the fee is paid by a legal entity or individual entrepreneur, the charge for each vehicle can run into hundreds of thousands of rubles and depends on several variables, including age and engine displacement.
Economic activity around used cars showed notable movement in April, with sales rising sharply compared with the same month in 2022, a growth figure that reached 41 percent. This trend sits alongside ongoing policy discussions about how recycling-related charges influence automotive markets, consumer decisions, and cross-border trade dynamics. (TASS)
Analysts observe that any adjustment to the recycling fee can alter the cost structure for both private buyers and business fleets. The government’s current evaluation aims to balance environmental objectives with market realities, potentially affecting car ownership costs, vehicle depreciation considerations, and the broader supply chain for new and used vehicles. As these deliberations unfold, stakeholders in Canada and the United States may watch for indirect effects, including shifts in regional demand for imported vehicles, changes in cross-border auto shipments, and the way recycling programs shape consumer choices in neighboring markets. (TASS)