European Union: “Russia’s Renewal Tax implementation is unacceptable”

European Union: “Russia’s Renewal Tax implementation is unacceptable”

Vedomosti – The EU Commissioner of Trade: Karel De Gucht has defined the Renewal Tax, implemented in Russia since 01.09.2012, as an unacceptable precaution.

As one may remember, Russia had entered the World Trade Organisation (WTO) in August. Since the admittance of Russia to the WTO, the EU executives have been expressing their concerns about the contradiction of the Renewal Tax with the rules of the Organisation.

Karel De Gucht has drawn attention to the fact that the tax rates implemented on the vehicles entering Russia from the EU countries are higher today, in comparison with the period prior to Russia’a admittance to the WTO. De Gucht has added that although they support the government incentives available to manufacturers and importers, to encourage the renewal of automobiles in environmentally-friendly ways, this shouldn’t mean that they also approve the implemantation of instruments such as; tax or tariff rate increases in order to achieve this goal.