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Car-Tax Increase Set

The Moscow City Duma on Wednesday approved a plan to raise vehicle taxes starting Jan. 1, Vedomosti reported.

For vehicles with 70- to 100-horsepower engines, the tax will be increased from 7 rubles per unit of horsepower to 12 rubles, which is still less than the maximum 25 rubles per horsepower allowed by the Tax Code. For cars in the 100- to 225-horsepower range, the tax will increase 5 to 7 rubles per unit of horsepower.

The new version of the law still exempts owners of cars whose engines have less than 70 horsepower from paying a tax. There are 300,000 such vehicles in the city.

(MT)

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