Posts Tagged ‘import taxes’

Russia considers raising Import Duty …again

November 20, 2008

UPDATE: RUSSIA TIGHTENS USED CAR IMPORTS

Once again, the Russian government is considering sharply raising Import Duty on used cars to stem the tide of second-hand vehicles entering Russia. Consistently for the past few years Russia has been the top Japanese used car importer, where even last year alone they imported 441,539 used cars and this year looks set to clearly surpass that amount by the end of this year. Being that they import more than four times the amount of automobiles than the next biggest Japanese used car importing country, having Russia exports restricted can hurt this export industry.

The cause of them thinking about raising duties no doubt has multiple factors. For one, Russia has a long history of heavily favoring Lada (a Russia car manufacture) by keeping competition costly with high import costs. Another factors include the desire to get foreign car manufactures to set up plants within Russia (providing Russians jobs), cut the amount of money leaving Russia, and to be less dependent on the used car market.

On the bright side for Japan’s exporters, the idea of raise used car import duty is not new. In fact it has been discussed many times, but dropped when the far-east Russians protested. This is because the majority of the far east Russia relies on Japanese and Korean used cars which are affordable for those living in that market.

Source – Forbes

Excise Tax could Double in Mongolia

October 16, 2008

According to UB Post (Mongolian news agency), the Mongolian Parliament is looking to increase excise taxes on used cars to stem import levels.

Mongolia has been experiencing all time high car import levels these recent years. And as more young men and women come to driving age the expect a very large increase of drivers in the next 5 years. Unfortunately, the infrastructure in Mongolia is not prepared to handle the new massive load and Ulaanbaatar’s (the capitol) roads are already being pushed to their limits.

Mongolian car traders and exporters alike may want to complete deals before the proposal gets approved in Parliament and new import taxes rates are implemented (possibly).

Source- UB Post