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RF economic development ministry considers luxury tax calculation criteria

March 15, 2012, 14:37 UTC+3
It was proposed to set a limit at 1,000 square meters of total floor space
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MOSCOW, March 15 (Itar-Tass) —— A possible luxury tax should take into account the engine power and the age of a car, Russian Minister of Economic Development Elvira Nabiullina said on Thursday.

“It is a working proposal to impose a tax on cars with an engine power of 300 or more horse-powers, and to take into account the age of the car. The issue is under consideration,” she said and added that the car price will not be taken into account, since this is a sphere that is “hardly administrable.”

The ministry also proposed to make the luxury tax rate in respect of real estate facilities dependent on possible limits of per-capita area unit. “It was proposed to set a limit at 1,000 square meters of total floor space,” she said. “Now we are looking at making the luxury tax dependent on such limits.” Nonetheless, she added, the price of housing will not be taken into account either.

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