Authorities have offered a way to stimulate demand for domestic cars

Prime Minister Dmitry Medvedev signed a decree on introducing to the state Duma prepared by the Ministry of Finance of the bill containing amendments to the Tax code, which the government believes should lead to an increase in demand for domestic cars. The corresponding decree was posted Tuesday on the government website.

The project assumes that from 1 January 2017, taxpayers will be exempt from tax on property of organizations in respect of vehicles to be in compliance with the Russian legislation the state registration.

The rule will apply to vehicles manufactured after January 1, 2013 taken on record the result of the reorganization or liquidation of legal entities, as well as the transfer, including the acquisition of property between the persons recognized in accordance with the provisions of paragraph 2 of article 1051 of the Tax code are interdependent.

The document was approved by the government at the meeting on August 18. Medvedev then noted that the proposed measure will encourage businesses, organization to upgrade its fleet and will create additional demand for domestic appliances.

“The main condition in order to obtain this benefit, a car or other vehicle should be manufactured after January 1, 2013. We expect that this measure will encourage businesses, organization to upgrade its fleet and will create additional demand for domestic appliances”, said the Prime Minister.