New tax could curb booming sales of luxury cars in Russia
In contrast with many markets around the world, luxury cars in Russia registered booming sales, Mercedes Benz being the market leader, with 33.666 units sold in the first 11 months of 2012, a 31% growth compared to the same period last year. But, direct competitor, Audi registered the biggest sales increase in the first 11 months of 2012 – 61%, with a total of 31.318 units sold. BMW has had a slower growth in sales in Russia,of only 6% but ranking second in total number of units sold (33.117) after Mercedes Benz.
In his address to the nation on December 12, President Putin demanded the introduction of the luxury tax on real estate, cars etc. The Finance Minister initially indicated that luxury cars were to be taxed according to capacity, however, more recently, Vice President of the Duma (Russia’s Parliament) advised taxation will be mainly imposed according to the value of the car.