Support The Moscow Times!

New Russian Truck Tax Could Hike Price of Real Estate

Russia is already mired in an economic slump, with output expected to contract by around 4 percent this year.

New tariffs on Russian trucks could increase the cost of real estate by nearly 10 percent by making it more expensive to transport building materials, a construction industry body has warned.

In a letter to the Housing Ministry obtained by the RBC news agency on Thursday, an association of major Moscow region construction companies said decisions this year to lower the maximum weight of road freight and impose a duty on the use of highways would increase construction costs by 7-9 percent.

The letter warned that higher costs could lead to a slowdown in the construction sector, according to RBC. Russia is already mired in an economic slump, with output expected to contract by around 4 percent this year.

The new freight tariff system, which uses satellite tracking to monitor trucks' movement along federal highways and charges a per-kilometer fee, incited nationwide protests by truckers when it began last week.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.