St. Petersburg administration has asked the government to reduce the tariffs implemented on components used in truck assembly

St. Petersburg administration has asked the government to reduce the tariffs implemented on components used in truck assembly

TASS – St. Petersburg city administration has asked the Russian Federation Ministry of Industry and Commerce for the reduction of the tariffs implemented on the components used in truck production with SKD method. According to TASS, the relevant statement has been made by the city’s Industry Policy and Innovation Commitee chairman: Maxim Meyskin.

Meyskin has said the following:

“We have called for a discussion on the tariff rates implemented on components before the ministry, due to the paradoxical situation: While 5% tariff is implemented on the imports of new trucks, the rate is 8% for the components of trucks assembled domestically. We’re currently negotiating the subject with the ministry officials.”

There are two factories making truck assembly in St. Petersburg: MAN and Scania. Scania predicts a 35% shrinkage for the truck market in 2015, therefore suspending production periodically. MAN Trucks and Bus Production Rus has also suspended production due to falling demand, between 1 March – 12 May.