Auto and payment: budget revenues from the utilization fee exceeded Br1 trillion
Budget revenues from the utilization fee in 2024 exceeded Br1 trillion. This is 1.7 times more compared to 2023 and 13% above the forecast, the Ministry of Finance told Izvestia. This is one of the fastest growing revenue items in the treasury, comparable in size to revenues from excise taxes and housing and utilities expenses. Utilization fee is a painful topic for those who want to buy a car, as it significantly increases the cost of a car, and the authorities only continue to increase the rate. In 2024, prices for passenger cars have risen almost 1.4 times. What will happen to their prices this year - in the material "Izvestia".
How the utilization fee is calculated
Treasury revenues from the recycling fee in 2024 amounted to 1.1 trillion rubles, including 669 billion on imported vehicles and 417 billion - on vehicles produced in Russia, reported "Izvestia" in the press service of the Ministry of Finance. Thetotal amount is 1.7 times higher than the receipts under this article for 2023 (659 billion) and 13% higher than the revised budget forecast (967 billion), follows from the financial plan for 2024.
Utilization fee is one of the most significant and fastest growing items of treasury revenues. Last year, this payment accounted for 3% of all budget revenues (36.7 trillion). Its size is comparable to the projected transfers from excise duties (1.3 trillion) and import duties (1.2 trillion), according to Freedom Finance Global analyst Vladimir Chernov.
At the same time, the utilization fee outpaced the expected revenues from gratuitous payments (0.8 trillion), export customs duties (except for oil and gas, 0.7 trillion), dividends (0.7 trillion), and personal income tax - tax on the rich (0.3 trillion).
-Revenues from the recycling tax are also comparable to budget expenditures on housing and utilities and environmental protection, " Vladimir Chernov added.
In terms of growth rate (1.7 times), the revenues from the scrappage fee overtake almost all projected tax revenues of the federal budget, except for personal income tax payments.
Utilization fee is a kind of one-time environmental tax levied on car manufacturers in Russia, as well as importers - legal entities and individuals importing vehicles from abroad.
The fee should cover the costs of recycling and disposal of vehicles and other equipment (construction, agricultural) when they go out of service. The main purpose of the fee is to minimize environmental damage from old vehicles and machinery.
To calculate the amount of the recycling fee, you need to multiply its prime rate by a coefficient. These rates depend on the type of vehicle, its age and other characteristics. Now, as in 2024, the following base tax rates apply:
- for passenger cars - 20 thousand rubles,
- for other types of vehicles - Br150 thousand,
- for self-propelled vehicles and trailers - Br172.5 thousand.
The coefficients differ depending on several parameters and increase every year. They mainly depend on the purpose of importation, age of the machine, engine capacity. This year, the coefficients from 9.01 to 180.24 are valid for sale. Thus, the amount of commercial duty for a passenger car can be from Br180.2 thousand to Br3.6 million.
If an individual takes a passenger car from abroad for personal use, the coefficient depending on the age is from 0.17 to 0.26, and, accordingly, it is necessary to pay from Br3.4 thousand to Br5.2 thousand.
Why the revenues from the recycling tax have increased
Thegrowth of revenues from the recycling tax in 2024 compared to 2023 is mainly due to the increase in payment rates, explained in the Ministry of Finance.
Thus, since April 2024, three additional coefficients are used in the calculation of the salvage tax on vehicles not customs cleared in Russia: customs duty, VAT and excise duty, recalled Meri Valishvili, associate professor of the Department of State and Municipal Finance at Plekhanov Russian Economic University, which means that three more mandatory payments have been added to the prime rate.
Atthe same time, since October last year the amount of the fee has increased by70-85% depending on the technical characteristics of cars imported into the country, the expert added.
Another reason for the increase in revenues from the scrappage fee is the growth in thevolume of imported vehicles, the Ministry of Finance noted. According to Avtostat, more than 1 million new foreign cars will be imported into Russia in 2024 - 23% more than in 2023, said Vladimir Chernov from Freedom Finance Global.
- Imports of vehicles in 2024 increased against the background of increased demand for them just because of the excitement in anticipation of the increase in the utilization tax and the expectation of higher car loan rates, - explained the expert.
In addition, in 2024 continued to develop parallel imports, in particular brands of cars, previously discontinued in the country, added a leading expert of MC "Finam Management" Dmitry Baranov.
Earlier "Izvestia" wrote that in 2024, Russians bought cars on credit for a record 2 trillion rubles. At the same time, according to "Avtostat", last year's sales of cars in Russia were the best for the last five years, reaching the figure of 1.6 million.
Domestic production is also increasing - in 2024, the total volume of vehicle production increased by 33% to 1.1 million units, according to Avtostat analysts. The demand for our cars is growing because many foreign brands have left, and the remaining ones are overpriced, said Vladimir Chernov.
-The growth of revenues from the scrappage fee is also associated with the closure in 2024 of the bypass schemes, previously used and allowing to pay less when importing cars, - added Associate Professor of the Institute of Law and National Security of the Presidential Academy Pavel Gribov.
What will happen to car prices in 2025?
The increase in the scrappage fee directly leads to an increase in car prices. In 2024, the cost of passenger cars increased by 38% on average, according to Andrei Girinsky, Associate Professor at the Faculty of Economics of the RUDN.
In 2025, the scrappage fee increased by 20% - the cost of cars may rise by the same amount this year, expects Vladimir Chernov. He specified: as a result, cars with an engine capacity of1-2 liters will rise in price by an average ofBr110-130 thousand. Andrei Barkhota, candidate of economic sciences, agreed with this assessment. He is sure that the prices for transportation will rise by 20%.
- The growth of car prices in 2025 is inevitable for a number of general economic reasons. According to the optimistic forecast, it will amount to about 10%, - says Pavel Gribov from the Presidential Academy.
Taking into account the increase in rates on the utilization fee and in 2025 is expected to increase revenues to the budget, said the Ministry of Finance. According to the financial plan, the treasury revenues from this tax are projected at 2 trillion.
From 2025, many exemptions for the payment of scrappage tax will cease to apply, in particular for hybrid cars and electric cars, and they are quite popular when imported from China, emphasized Pavel Gribov. This will also contribute to further growth of revenues to the treasury.
- However, it is unlikely to expect a two-fold growth. Sales of imported cars will be reduced against the background of the effect of high base of last year (the excitement has already subsided). Increase of the scrappage tariffs by 20% will be able to level it only partially, - Vladimir Chernov believes.
Earlier "Izvestia" cited the estimates of experts and dealers, predicting a decline in sales of new cars this year. According to the majority, the figures will decrease by 10-20% due to the growth of inflation, scrappage duty and high key rate.
