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You're reading: Azarov: Ukraine, Russia holding talks of vehicle recycling tax

Kyiv and Moscow are holding talks to settle the issue of the introduction of the recycling tax on import of cars, Ukrainian Prime Minister Mykola Azarov.

“The issue is currently being settled, and our delegation will work with the relevant ministries of the Russian Federation. The Russian prime minister has given such instructions. Yesterday, we discussed almost all the issues that needed to be addressed, but let’s not run ahead,” Azarov said in Luhansk on Saturday.

As reported, the law on the introduction of a 30% vehicle recycling tax took effect in Russia on September 1, 2012. According to the law, the tax will be paid on every vehicle imported to Russia, with the aim of protecting the environment.

Lawyers say the introduction of the vehicle recycling tax is a violation of a national regime, one of the basic principles of the World Trade Organization (WTO).

Russia’s national regime foresees that the country is obliged to provide importers of cars no worse conditions than for Russian car developers.

In turn the Ukrainian Cabinet of Ministers on September 12 announced a resolution to impose its own recycling taxes on Russian automobiles and buses, the top rates of which are virtually the same as those imposed by Russia on September 1.

On September 25, the Ukrainian government’s envoy for cooperation with Russia and the CIS countries, Valeriy Muntiyan, said that Ukraine offered to Russia to introduce national regimes of recycling tax on imported cars.

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