Fraternal rates: how Belarusian scrappage duty will affect cars in Russia
The Belarusian authorities have raised the utilization fee to the Russian level. These measures are primarily aimed at curbing various gray schemes of importing cars into our country through the neighboring state, experts say. At the same time, experts predict an increase in prices for "Belarusian" cars and the reduction of their imports. "Izvestia" found out how much the size of the Belarusian scrappage fee will increase and how it will affect the Russian buyers.
To equalize the indicators
The Belarusian authorities, following Russia , raised the rates of utilization fee on cars imported from abroad or produced in the country. The corresponding decree was signed by Prime Minister Roman Golovchenko. It provides for the alignment of the Belarusian recycling fee rates with those in force in Russia from January 1, 2025, according to the government of the neighboring state. "Izvestia" familiarized with the draft decree (a copy of the document is available to the editorial board).
Thus, for cars not older than three years with an engine capacity of up to 1 liter, the size of the scrappage fee in Belarus (in terms of Russian currency) increases from Br91.2 to Br184.6 thousand, while for models older than three years - from Br232.8 to Br471.2 thousand. For comparison: in our country this fee from January 2025 for such cars is Br180.2 and Br460 thousand, respectively.
With regard to models with 1-2 liter engines, the recycling fee in the neighboring country increases from Br338 to Br683.7 thousand (for new) and from Br594 thousand to Br1.2 million (older than three years). In Russia, it is Br667.4 thousand and Br1.174 million for such cars.
For new cars with 2-3 liters engine in Belarus, one will have to pay Br1.92 million (for new cars) and Br2.9 million (for cars older than three years) instead of the previous Br949 thousand and Br1.43 million. In our country, such cars are "estimated" at Br1.87 and Br2.84 million from the new year. For new models with 3-3.5 liter engines in Belarus, the scrappage fee is raised from Br1.09 to Br2.2 million, while for used - from Br1.67 to Br3.38 million. The Russian fee for such cars is now Br2.15 and Br3.3 million, respectively.
For cars with an engine capacity of more than 3.5 liters, the Belarusian utilization fee will amount to Br2.8 and Br3.7 million (previously Br1.4 and Br1.8 million): in Russia it is Br2.74 and Br3.6 million for them.
Benefits remain
In Belarus, as well as in Russia, there are preferential rates for vehicles imported by "importers - individuals for personal use". Indexation does not affect them: as before, in the neighboring country they are Br15.7 and Br23.7 thousand for new and used models. In our country, they are lower: Br3.4 and Br5.2 thousand, respectively.
Such benefits can be used by citizens who will import no more than one car with an engine capacity of up to 3 liters during the year. The second condition - after importation, the car must be in the ownership of the importer for at least 12 months. In case of non-compliance with either of these requirements, the "commercial" size of the utilization fee will apply.
Both here and there
According to the data of Sergey Tselikov, Director General of the analytical agency "Avtostat", last year 14% of all cars imported to Russia through Belarus were imported by alternative imports . At the same time, a significant part of such cars was delivered through various gray schemes, noted the experts interviewed by "Izvestia".
Raising the utilization fee in Belarus to the level of Russian rates should eliminate the key factor of gray import of cars through the neighboring country and may reduce the share of such cars by another 2-5%, says Irina Frank, Managing Director of Frank Auto. According to her, the difference in fees allowed such importers to save money by offering cheaper cars.
- "Now this difference will disappear, which may lead to an increase in prices of cars imported through Belarus to the level of official dealers in Russia, as well as to the reduction of offers for buyers, who previously used the Belarusian channel to save money," said Irina Frank to "Izvestia.
Vice President of the National Automobile Union Anton Shaparin agrees with her. According to him, bringing the recycling fee rates to the "common denominator" will cause a reduction in the number of importers, trying to save on the difference between the Russian and Belarusian size of the recycling fee.
- First of all, the "risk zone" will be those who brought expensive cars through the privileged Belarus in order to reduce the size of customs duties. They'll have to pay both Belarusian and our utilization tax. Or the car will have to "stand for a year" in Belarus, and then another year - in Russia. Only in this case, the importer will be able to count on preferential rates," explained Anton Shaparin to "Izvestia.
The introduction of additional restrictions will obviously reduce the flow of cars, which are imported to us from third countries through Belarus, says Maxim Kadakov, editor-in-chief of "Za Rulem" magazine.
- The new size of the scrappage fee in the neighboring country will make the "Belarusian" channel of car supplies to Russia less interesting and profitable," he believes.
What will happen to car prices
Importers are likely to shift the increased costs of scrappage duty to end consumers, said Irina Frank.
- For new cars in the premium segment, this may mean an increase in cost by 5-15%, depending on the category of the car. For mass models, the growth will amount to about 3-8%. This will make Belarusian imports less competitive compared to direct deliveries to Russia," said the interlocutor.
The expert calls the short-term consequence of the increase in scrappage duty in Belarus the growth of demand for used cars and strengthening the positions of official dealers in Russia. Reduced competition from gray imports may allow them to keep prices, but in the long term the situation will depend much more on the balance of supply and demand, says Irina Frank.
- The new rules introduced in Belarus will definitely not lead to a decrease in prices. At the moment, we can say with certainty that cars in Russia will not become cheaper," says Maxim Kadakov.
