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Government Publishes Car Recycling Fees

A new recycling fee for cars is meant to? cover the? future costs of? decommissioning and? recycling vehicles at? the end of? their lifetime. Above, a crane at a facility that recycles out-of-service cars. Andrei Makhonin

The government has introduced a recycling fee for vehicles produced in Russia or imported from any country other than Belarus and Kazakhstan.

The fee took effect on Sept. 1, according to a Cabinet announcement published on Rossiiskaya Gazeta's website.

Individuals importing cars for personal use will pay 2,000 rubles ($61.70) for new cars and 3,000 rubles for cars more than three years old.

People importing new cars for commercial use, including car dealers who then resell the vehicles, will pay fees ranging from 17,200 rubles for automobiles with an engine capacity of up to 1 liter to 110,000 rubles for vehicles with an engine capacity of more than 3.5 liters.

The fees for used cars more than three years old will be between 106,000 rubles and 700,200 rubles.

The fee for new trucks will range from 75,000 rubles for vehicles weighing up to 2.5 tons to 435,000 rubles for those weighing between 20 and 50 tons. People importing trucks over three years old will pay from 132,000 rubles to 1.77 million rubles.

The fee is meant to? cover the? future costs of? decommissioning and? recycling vehicles at? the end of? their lifetime, with revenues raised going to? the development of? new recycling facilities.

Maria Zaikina, head of corporate communications at Rolf automotive group, said the recycling fee's introduction could offset the reduction in car import tariffs, which is taking place as a result of the country's accession to the World Trade Organization.

The fee might have an impact on the price of some vehicles, such as ones with large engines, although their prices are unlikely to rise by more than 1 to 2 percent, Zaikina said.

The purpose of the fee is to stimulate domestic vehicle production and prevent imports of low-quality vehicles, especially used ones, she said.

Domestic producers that promise to recycle their cars in the future will be exempt from the fee, which would place them in a favorable position compared with importers. Some importers eligible for tax breaks will also be exempt from the fee, however.

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