Decision On Raising Import Duties On Cars Postponed

The decision to raise the import duty rates for used cars that are 3-7 years old and over 7 years old has been postponed until additional calculations are made. This decision was made yesterday after a meeting of Prime Minister Mikhail Kasyanov, Deputy Prime Minister Ilya Klebanov and Economic Development and Trade Minister German Gref. The Prime Minister's press secretary, Tatyana Razbash, told reporters that before making a decision on this issue, Kasyanov considered it necessary to make additional calculations. As it was reported earlier, a decision was made at a meeting of the Government Commission on Protective Measures in Foreign Trade and the Policy on Customs Duties to set a duty scale for legal entities for cars that were 3-7 years old at 0.5-1.1 euros per 1 cubic centimeter of engine displacement and 1.4-3.2 euros for cars that were over 7 years old. For individuals the duty rates were expected to be 1 euro per 1 cubic centimeter of engine displacement for cars that were 3-7 years old (with an engine displacement below 2.5L); for cars that were over 7 years old the suggested rates are 2 euros per 1 cubic centimeter for engines of less than 2.5L and 3 euros for engines with displacement of more than 2.5L. It is planned that the question of increasing the import duties for used cars will be linked to the strategy of development of the local car industry. Andrey Svinarenko, deputy minister of the industry, science and technology, said while talking with reporters that if the plan for increasing the duty rates suggested by the government commission is adopted, "Russian cars can become more expensive only in accordance with changes in their quality."