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Taxes on car owners to go up 13 percent 2013

October 24, 2012, 18:47 UTC+3
The suggested amendments are expected to raise the overall revenues to the Moscow budget by 2.5 billion roubles
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MOSCOW, October 24 (Itar-Tass) — The Moscow authorities will increase the tax on cars owners by 13 percent in 2013, the city government's economic policies and development department chief Maxim Reshetnikov said on Wednesday.

The general indexation will make up 13 percent, or 600 roubles per car owner, Reshetnikov said. The tax rises will mostly apply to cars with 100-200 hp engines, which account for almost 90 percent of Moscow's overall car fleet. The rates of taxes on super-powerful cars will remain unchanged, while the owners of cars with an engine capacity under 70 hp will be tax-exempt, as before, he said.

The amended bill envisages a 200 hp cap on vehicles whose owners are entitled to discounts. Of late, ever more powerful cars began to be registerd in the names of people enjoying tax breaks, Reshetnikov explained.

The suggested amendments are expected to raise the overall revenues to the Moscow budget by 2.5 billion roubles, Reshetnikov added. At present, the overall contributions from car owners cover only two-thirds of the city's expenditures on roads maintenance and current costs, he said.

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