Dealers Asked The President Not To Increase Waste Collection

The Russian Automobile Dealers Association (ROAD) has sent a letter to Russian President Vladimir Putin, which says about the risks of increasing waste collection - it is scheduled for January 1, 2020. The rise in rates will lead to higher prices for cars and negatively affect the economy, writes Kommersant.

ROAD experts believe that, in addition to the auto business, the rise in prices will negatively affect the economy as a whole, because related industries will be affected. Sales of a number of car brands may become unprofitable, which will close 200-300 dealerships, which will lead to the layoff of at least 20 thousand people. This, in turn, will reduce tax payments to the state budget. In addition, competition will worsen and the choice for the end consumer will decrease.

It is known that waste collection for new passenger cars will grow by 110%. According to experts, this will lead to an increase in prices by about 2-4%. The government plans to receive about 338.4 billion rubles from waste collection for cars produced in Russia and 77.3 billion from imported cars. At the beginning of October, the Ministry of Industry and Trade of the Russian Federation proposed to keep the amount of waste collection for used cars older than three years at the current level.