Russia May Impose Consumption Tax on Tires

According to a commercial consulting website in Russia, auto tire has been involved in the goods on which consumption taxes are to be levied by Russian government.

It is reported that the proposal is under discussion.

Board chairman of Russian tire manufacturers’ union commented that when sales of new cars decline and consumers’ purchasing power weakens, imposing consumption tax on tires will only squeeze the market and push up the prices.

An industry expert said in Russia, consumption tax has been imposed on autos, if there is an extra consumption tax, we may see oversupply in some of the auto parts.