Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Used Car Import Tariffs Jump

Reacting to pressure from President Vladimir Putin and the automobile lobby, Prime Minister Mikhail Kasyanov late Friday signed a resolution that more than doubles import tariffs on used cars older than seven years, news agencies reported.

Though long expected, the new tariffs are not as high as the country's automakers had hoped, and tariffs on new cars and those between three and seven years old were not changed.

Many popular used foreign cars more than seven years old cost about the same as new domestic cars.

All cars older than three years are currently levied at 0.85 euros ($0.83) per cubic centimeters of engine volume up to 2.5 liters, and 1.4 euros for cars with motors larger than 2.5 liters.

When the new tariffs come into effect, which is one month after the government publishes the resolution in its official newspaper, Rossiiskaya Gazeta, tariffs on imports older than seven years will jump to 2 euros and 3 euros per cubic centimeter, respectively.

Once the new tariffs come into force, motorists looking to buy the popular 1994 1.6-liter Volkswagen Golf will see the price tag jump from around $6,000 to nearly $8,000, with the tariff accounting for roughly 40 percent of the total.

A new AvtoVAZ Lada 10, which is in the same class as the Golf, goes for about $6,000.

The price of a 1993 3-liter BMW-730i will jump even higher -- to $12,800 from a current average of $8,000.

The prime minister signaled that he would sign off on some tariff hikes last month.

"We have to get this junk off the roads," he said, referring to old imports, while cautioning that tariffs should be raised carefully so as not to hurt consumers.

Several ministries and other official bodies involved in drafting the government's 10-year development plan for the automobile industry, which was approved in July, wanted tariffs to be at least tripled, if not quadrupled to protect domestic manufacturers.