As Russia navigates its evolving automotive landscape in 2025, significant changes to the Russia Car Tax 2025 are set to impact vehicle owners, importers, and manufacturers alike. Whether you’re a car owner in Moscow or a business importing vehicles into Russia, understanding these updates is crucial.
Key Changes in Russia Car Tax 2025
Increased Recycling (Scrappage) Fees
Starting October 1, 2024, Russia introduced a substantial hike in its vehicle recycling fees, raising rates for passenger cars by 70–85%. These fees are expected to increase by an additional 10–20% annually through 2030. The government aims to boost domestic production and raise state revenue through this measure.
Expansion of Luxury Car Taxation
In March 2025, the Ministry of Industry and Trade expanded the list of luxury cars subject to increased transport tax. This now includes 555 models valued over 10 million rubles, encompassing brands like Audi, BMW, and several Chinese manufacturers such as BYD and Hongqi.
Regional Transport Tax Adjustments
In Moscow, the transport tax rate for vehicles with a capacity of 120 horsepower increased by 3 rubles per horsepower, raising the rate from 25 to 28 rubles per horsepower in 2025.
Overview of Key Tax Changes
| Tax Component | Previous Rate | New Rate (2025) | Notes |
|---|---|---|---|
| Recycling Fee (Imported) | ~680 billion | ~1.14 trillion | Doubling to encourage domestic production |
| Recycling Fee (Domestic) | ~400 billion | ~871.5 billion | Increased to support local manufacturers |
| Luxury Car Taxation | N/A | Expanded list | Includes models over 10 million rubles |
| Transport Tax (Moscow) | 25 rub/hp | 28 rub/hp | 3 rub increase per horsepower |
Impact on Vehicle Owners and Importers
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Imported Vehicles: Higher recycling fees may lead to increased costs for imported cars, potentially making them less competitive compared to domestically produced vehicles
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Domestic Manufacturers: While facing higher recycling fees, they benefit from increased subsidies, aiming to offset production costs and promote local manufacturing
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Luxury Car Owners: Owners of high-value vehicles may experience increased transport taxes, impacting the overall cost of ownership
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General Public: The overall tax structure aims to encourage the purchase of domestically produced vehicles, potentially affecting consumer choices and market dynamics.
Frequently Asked Questions (FAQs)
1. What is the recycling (scrappage) fee in Russia?
The recycling fee is a one-time charge levied on vehicles to cover future disposal costs. In 2025, rates for passenger cars increased by 70–85%, with annual hikes of 10–20% planned through 2030.
2. How does the luxury car taxation work?
As of March 2025, vehicles valued over 10 million rubles are subject to increased transport taxes. This includes both traditional luxury brands and certain high-end Chinese models.
3. Are there regional variations in transport tax rates?
Yes, regions like Moscow have adjusted transport tax rates. For instance, in Moscow, the rate for a 120-horsepower vehicle increased from 25 to 28 rubles per horsepower in 2025.
4. How do these tax changes affect the car market?
The increased taxes on imported vehicles and the expansion of luxury car taxation may lead to higher prices for certain vehicles, potentially influencing consumer purchasing decisions and market trends.