Putin signs bill increasing tax on luxury cars into law
MOSCOW, July 24 (RAPSI) - President Vladimir Putin has signed the law increasing the tax on cars worth 3 million rubles ($92,849) or more. The document has been posted on the government website of legal information.
The bill has been drafted by the Finance Ministry in response to President Vladimir Putin's state of the nation address.
The new legislation introduces a 1.1 multiplier for the transport tax on cars worth 3-5 million rubles (up to $154,748) that are two to three years old. Newer cars in this category will be taxed with a 1.3 or 1.5 multiplier (for cars less than a year old).
Owners of cars worth 5-10 million rubles (up to $309,496) will pay a double tax if their cars are less than five years old.
Finally, cars with an average value of 10-15 million rubles (up to $464,244) will be subject to triple taxation if they are less than 10 years old. The same rule will apply to cars worth more than 15 million rubles if they are less than 20 years old.
The Industry and Trade Ministry will work out a procedure to estimate the average value of a car. The list of cars with an average value within the 3 million bracket will be updated annually on the ministry's website, by March 1.