The tax on wooden and upholstered furniture and mattresses from Europe can be increased from 8.5-12% to 50% in the form of retaliatory sanctions against hostile countries. About this newspaper “Izvestia” declaration at the Association of Furniture and Woodworking Businesses (AMDPR).
The publication noted that the increase in taxes is associated with the need to support domestic producers, as well as retaliatory sanctions against hostile countries. At the same time, market experts calculated that import furniture prices would increase by 60% if customs duty were introduced. Therefore, it will not be able to compete in the Russian market.
Market participants agreed with AMDPR’s proposal, calling it the right decision. In addition, the domestic market is saturated with its own manufacturers, and the share of imported furniture has already fallen seriously. According to the association, imported furniture accounted for 49% of the total market share in 2019. And by 2022, that figure has dropped to 24%.
Analysts stated that the tax increase will also be applied to goods subject to parallel imports. For example, IKEA products recently placed on the Ministry of Industry and Trade’s delivery list may be affected. As a result, the prices of these furniture can almost double.
Referring to the proposal of Rossiyskaya Gazeta, Furniture and Woodworking Industrialists Association on 8 December, Wrotethat plywood, furniture and packaging from “unfriendly” countries should be banned in Russia. At the same time, plywood is the hardest hit sector in the country where more than half of the market is lost. Also, despite falling prices, plywood production in Russia is at 2010 level.