The President of the Russian Federation signed a law on increasing the minimum level of the "luxury tax" to 10 million rubles

On March 26th, 2022, President of the Russian Federation Vladimir Putin signed a law according to which the minimum threshold for the cost of a car, which is subject to a "luxury tax", is increased. Now its minimum bar instead of the previous 3 million rubles is 10 million rubles. This information was published on the official portal of legal information of the Russian Federation. Recall that on March 22nd, the State Duma adopted in the final reading the relevant amendments to the Tax Code, and the next day, March 23, they were approved by the Federation Council. Thus, according to the new law, cars worth up to 10 million rubles are withdrawn from the "luxury tax". The so-called "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 whose price 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 1, 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 multiplier that is multiplied by the amount of the regular vehicle tax paid annually by car owners. 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. As experts of the agency "AUTOSTAT" note, in the first half of March, prices for new cars rushed up even more, the growth was 20 - 30% in average. And for 1 million rubles only LADA Granta and LADA Niva Legend are available.