Russia proposes luxury tax on high-end cars, yachts and helicopters

A proposal has been put forward in Russia to introduce a one-time tax on the purchase of luxury cars, yachts, airplanes and helicopters. The relevant bill is set to be submitted to the State Duma by deputies from the political party A Just Russia – For Truth.

According to TASS, members of the parliamentary faction propose introducing a one-off tax on the purchase of high-value vehicles. This would apply to cars worth more than 20 million roubles (approximately 260,000 USD), as well as yachts, motorboats, helicopters and aircraft valued above 50 million roubles (around 650,000 USD). The proposed tax rate would range from 1 to 4 per cent, depending on the cost of the vehicle.

The tax would be payable upon state registration of the vehicle or within 30 calendar days from the date of purchase if registration is not required or has not been carried out.

In addition to transport, the deputies also intend to raise taxes on high-end real estate. For flats and houses valued above 350 million roubles (approximately 4.55 million USD), the increased rate could reach 3 per cent; for properties exceeding 450 million roubles (around 5.85 million USD), 3.5 per cent; and for those worth more than 550 million roubles (about 7.15 million USD), 4 per cent.

“The implementation of the draft law will help generate additional revenues for regional and local budgets, as well as create incentives to optimise ownership of excessive real estate and ultra-expensive movable property,” the authors of the bill explained.

By Vugar Khalilov