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Putin Signs Luxury Car Tax Bill Into Law

President Vladimir Putin has formally approved a bill setting higher transportation tax rates on luxury cars, according to a document posted on the government's legal information website Tuesday.

Cars that cost between 5 million and 10 million rubles ($155,000 and $315,000) and are not more than five years old will be taxed at double the rate.

Cars that cost 10 million to 15 million rubles and are not more than 10 years old as well as cars that cost over 15 million rubles and are not more than 20 years ago will be taxed at a triple rate.

The procedure for calculating the average cost of cars will be established by the Industry and Trade Ministry, with a list of cars costing 3 million rubles and more will be published on the ministry's website every year, no later than March 1.

In April, opposition blogger Alexei Navalny proposed a bill banning state and government officials from buying cars worth more than 1.5 million rubles ($45,500). By mid-July, the bill gained the required 100,000 online votes, enabling it to be submitted to the government for discussion, reported.

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