You're reading: ZAZ hopes Ukraine and Russia will find compromise on issue of vehicle recycling tax

MOSCOW - PJSC Zaporizhia Automobile Plant (ZAZ) has said it hopes that an imported vehicle recycling tax introduced by Russia from September will not affect the export plans of the Zaporizhia enterprise on the Russian automotive market.

“It’s hard to protest against the idea of a vehicle recycling tax.
However, we hope that our government will achieve a compromise with
Russia on this issue. The tax should not affect our plans on the Russian
automotive market,” Director General of CJSC ZAZAvtoRus Bohdan Vasylets
said at the Moscow International Automobile Salon 2012.

According to ZAZ Board Chairman Mykola Yevdokymenko, Russia’s
introducing an imported vehicle recycling tax, which is directly related
to the interests of Russian carmakers, is a fair reaction to Russia’s
accession to the WTO.

“Having joined the WTO, the Russian government reduced import duties
by 5%, but imposed a car recycling fee, thus protecting Russian car
producers,” he said.

According to him, at this stage it is difficult to assess the
consequences of Russia’s introducing a car recycling fee for the
Ukrainian car industry, which has long-term market interests on the
Russian automobile market.

“Now there is only a decision on the introduction of a car recycling
fee, but there is no mechanism for its implementation. We still do not
understand how the operators will pay this fee,” he said.