Authorities are unlikely to index the scrap collection on cars in 2022
The probability that in 2022 Russia will index the recycling fee for new cars and trucks with internal combustion engines is small, told reporters the head of the Russian Ministry of Trade Denis Manturov. According to him, there is only a discussion on harmonizing the basic rates and coefficients of scrap collection for special equipment in Russia with other countries – members of the Eurasian Economic Union (EAEU; besides Russia includes Belarus, Kazakhstan, Armenia and Kyrgyzstan).
Waste collection in Russia has existed since 2012 and has increased three times during this time. The Ministry of Industry and Trade planned to index it again in 2021. Formally, it is an environmental tax that covers the costs of disposing of decommissioned equipment, but in fact it initially protected domestic producers, as it was paid only for imported equipment.
The recycling fee consists of the base rate and the factor by which it is multiplied. The magnitude of the coefficient depends on the engine capacity and the age of the vehicle. Usually, the government changed the coefficients when increasing the utility bill, and in 2021 it was going to raise the base rate – by 25% for cars and trucks, to 25,000 and 187,500 rubles. respectively.
Since 2014, after complaints from car importers to the WTO, the recycling fee has been extended to local manufacturers. But at the same time, industrial subsidies were introduced for them, which are not formally related to recycling, but de facto compensate for it. These subsidies are received by the signatories of preferential special investment contracts of car concerns (this is the vast majority of plants in the country). In December 2020, industrial subsidies were differentiated according to the target level of localization, which increases over the years.
During 2021, Vedomosti sources reported on various scenarios being considered by the government regarding recycling. For example, in the summer the document regulating its indexation hung at the level of interdepartmental coordination, sources said. Then it was expected that the indexation will take place from the beginning of 2022, because to arrange it at the end of the year, especially given the elections to the State Duma, it made no sense. In December, Vedomosti sources said that the option of increasing the recycling fee from April 2022 was being considered.
Funds raised from carmakers as a recycling fee partially allow the Ministry of Industry and Trade to finance programs to support demand in the car market. According to Manturov, a total of about 20 billion rubles has been invested in them. for next year. We are talking about preferential car loans and preferential leasing programs, including electric cars, as well as subsidies for the purchase of gas-powered vehicles. “The decision to launch these programs will be made next year, depending on the state of the car market in Russia in 2021 and early 2022 and the situation with a shortage of cars from dealers,” said Manturov.
In the second half of 2021, the Russian car market is experiencing difficulties due to the shortage of new cars. The lack of electronic automotive components has led to a decline in production and reduced supply of car dealers. The deficit, in turn, led to rising prices. According to the forecasts of the analytical agency “Avtostat”, the weighted average (taking into account the market share. – “Gazette”) the cost of a new car for the year will increase by 25% to 2.1 million rubles. Sales growth in this composition is only 1% compared to the apparent 2020 to 1480,000 units.
Uncertainty with the rates of recycling fees has already caused confusion in a difficult market situation, said an independent consultant in the automotive industry Sergei Burgazliev. The government’s desire to protect those producers who have invested significant funds in Russia is commendable, but this desire should be predictable for all market participants, including dealers and end consumers, the expert said.
According to his estimates, in the past year the car market in Russia fell short of about 200,000-250,000 cars sold due to difficulties with the production of components containing microchips and semiconductors. “By the end of the summer of 2022, the situation with production will not change dramatically, but then, in the case of a significant increase in production of the necessary components, the Russian market will be significantly increased due to dissatisfaction in 2021-2022. demand, ”he told Vedomosti.
According to Burgazliev, it would be much easier if the Ministry of Industry and Trade gave firm guarantees that the recycling fee will not be increased by the end of 2022. This step would significantly calm the market and reassure that deferred demand will be replenished without further price increases. on the car, the expert said.