State Duma raised the minimum level of "luxury tax" for cars up to 10 million rubles

State Duma adopted in the final reading amendments to the Tax Code, which provide for an increase of the minimum threshold for the cost of a car, which is subject to the "luxury tax", from 3 million rubles to 10 million rubles. These changes will apply to cars purchased from January 1st, 2022, the press service of the State Duma reports.

At the same time, in accordance with the requirements of the current Tax Code, the Ministry of Industry and Trade of Russia published previously a list of cars more expensive than 3 million rubles. As noted, under the current conditions, this list is for informational purposes and will not entail the establishment of an increasing tax coefficient on cars worth from 3 to 10 million rubles. Recall that the "luxury tax" was first established in our country in 2014. Then the coefficients for tax payments were determined, depending on the cost of the car - for cars the price of which exceeded 3 million rubles. Since then, every year, as prices rise, the initial list compiled by the Ministry of Industry and Trade has noticeably increased, and as of March 1st, 2022, it already included 1,380 models and modifications.

After raising the minimum “luxury tax” for cars to 10 million rubles, this list will be reduced to 345 items. The luxury tax is a coefficient by which the amount of the ordinary vehicle tax paid annually by car owners is multiplied. According to the rules established in 2014, a luxury car is considered to be worth more than 3 million rubles.

If the car costs up to 5 million rubles, the multiplying factor is 1.5. A car worth 5-10 million rubles and under the age of five years is subject to a double tax, the price of 10-15 million and an age of 10-20 years is triple.