State Duma deputy Vladislav Davankov has proposed a tax deduction for purchasers of new domestic cars, signaling a push to boost Russia’s automobile industry. This information comes from TASS, which reports that a corresponding letter was sent to the Prime Minister of the Russian Federation, Mikhail Mishustin, requesting consideration of the initiative.
Davankov asks Mishustin to evaluate the plan to allow a tax deduction when buying a new car manufactured in Russia. If approved, the deputy suggests that government authorities should take steps to implement the measure. The core idea is to reduce the tax burden on buyers of domestically produced vehicles to foster greater demand and support domestic manufacturers.
The deputy argues that introducing a tax deduction would stimulate local car purchases and, as a result, strengthen the market for Russian-made automobiles. A successful implementation could also influence car ownership trends by making domestic models more financially attractive to consumers who are weighing options between foreign and homegrown brands.
Earlier in August 2023, Davankov wrote to Prime Minister Mishustin proposing another incentive: free three-year parking in all paid lots for new cars that have a foreign stake in their registered capital below 50 percent. He contends that allowing government support in this form would help increase sales of Russian vehicles while encouraging investment in domestic manufacturing.
Previously, there has been discussion about AvtoVAZ expanding its lineup to include family cars, a development that could complement policy efforts to strengthen the domestic automotive sector and broaden the range of Russian-made options available to consumers.