OREANDA-NEWS. The Government is considering the possibility of indexing tax for scrappage scheme due to the devaluation of the ruble and inflation.

The issue was raised at several meetings on measures to support the automotive industry in the beginning of the year, and it is now being discussed at the level of Ministry of Industry and Trade. According to sources, the fall of the ruble led to a decrease in the share of scrappage fee in the customs value of the car from 10-15% in 2012-2013 to 2-7%. As a result, "the de facto reduced significantly the non-tariff protection of domestic production from imports." Additional income from indexing can go on measures to support the car market, for example, in the framework of preferential lease, for which this year it is provided only 2 billion Rubles of budgetary funds, says one source. According to it, "concrete steps for indexing of the fee can be taken in the third quarter”, now there are held preliminary calculations.

Sources say that indexing can be calculated based on the increase of the dollar and the euro against the ruble or consumer inflation. Since September, the dollar against the ruble rose by 57%, the euro – by 30%. Inflation on the consumer price index at the end of the year is predicted at the level of 12%. One of the interviewees believes that the fee will grow by 20-25%.

Scrappage fee was introduced in September of 2012 and initially it was distributed mainly on importers but domestic automakers and foreign manufacturers operating in the mode of industrial assembly did not pay it. Officially, the fee was introduced to protect the environment, but de facto compensated the reduction of rates of import duty on cars under the WTO commitments from 25% to 10-15%. Rate fee is 17,2-450 thousand rubles for new cars, depending on engine size and weight.

Under pressure from the EU, US and Japan, which initiated proceedings in the WTO with Russia because of the unequal terms of payment of the fee, from 2014 it was extended to automakers, operating in the country. It made it possible to "freeze" the dispute in the WTO at the panel of arbitrators. But the government has found a way to compensate indirectly the Russian car industry through subsidies, which are paid since 2014. How much money was brought by the fee to the budget is not known yet, in 2013 the government hoped that importers will pay in average 54 billion Rubles per year.

Industry participants emphasized that "without indexing of fee, its value is actually leveled", because the prices of imported cars rose from September 2014 in an average by 20-25%, for some brands - by 45-50%, and the fee has not changed. However, several sources in the automakers recognize that the weakening of the ruble "is an effective protection from imports itself." However, the indexing of the fee can lead to problems for Russian producers themselves. First, it would require an increase proportional increase of industrial subsidies, and "in a cost-cutting of budget there may be difficulties”. In addition, the increase in the fee can cause additional questions of the WTO and the "intensification of the proceedings", recognized sources. The idea has already caused discontent of importers: a source in one of the company, which has no production in Russia, said that it was "absolutely unfair and ineffective”. Vladimir Bespalov from "VTB Capital" agrees that indexing of the fee is "clearly designed to support the Russian automobile industry" and it can cause "certain issues" from the WTO. However, the analyst believes, it does not change the basic rules of the game in the car market of the country, "so it is unlikely Russia threatens new trial."