Cancel any motor vehicle tax
Why the transport tax have not yet abolished, and who not to pay.
In anticipation of the expiration of the tax to property of physical persons, which ends on December 1, the Network is become popular again talk about the abolition of the transport tax. Most of the conversations, as always, of the transport tax, which is probably one of the most controversial in modern Russian history. This is logical since most motorists do not want to pay the extortionate transport tax.
Lately, there’s been a lot of rumors about its cancellation. Especially after the Russian President last year signed a tax Amnesty, under which debts regarding the transport tax. So began the society the talk about the imminent abolition of the state dues. Our online publication decided to investigate and find out whether soon cancelled transport tax, and will have mercy if the President of the Russian Federation on the tax debtor again.
Now, recall that in 2012 the President of Russia Vladimir Putin supported the idea of abolishing the vehicle tax in the country. Then all were convinced that once the head of state himself is not against this, then soon the tax will be cancelled. But the reality was not so simple.
By the way, the State Duma of the Russian Federation, even repeatedly introduced bills to abolish the vehicle tax, but they were all rejected.
The standing of these was the bill number 480908-7 “On amendments to the Tax code of the Russian Federation in terms of abolition of the transport tax”, which is currently returned to the subject of law of legislative initiative to meet the requirements of the Constitution of the Russian Federation and the State Duma Regulations.
Recall that the bill provides for the abolition of the transport tax in Russia. The shortfall in income was offered to compensate by increasing the excise tax on fuel. As a result, in the case of the adoption of this law in our country, the vehicle tax would have been in the cost of fuel. According to the authors of the bill, the abolition of mandatory vehicle tax have made payment of the tax more equitable principle is “the Driver pays when coming.”
Unfortunately, despite the approval of the abolition of the vehicle tax by the President of the Russian Federation, this initiative has remained to this day on paper. And this despite the fact that back in 2012 at a meeting with party leaders of the State Duma, the head of state noted that he supports the abolition of the vehicle tax, stressing that this issue is extremely sensitive for a great number of people in the country. Also when Vladimir Putin explained why regions do not hasten to cancel the transport tax for car owners: the subjects of the Russian Federation just afraid if you cancel the transport tax reduction in revenues to local budgets.
However, the Committee on transport of the state Duma of the Russian Federation the information collection of the transport tax in the Russian Federation does not exceed 50%. So, as you can see, the abolition of the vehicle tax is unlikely to lead to the fall of budget revenues of Russian regions. Because the lost income would be more than offset by the inclusion of the increased excise tax in every litre of fuel.
In addition you need to look at the international experience of levy of vehicle tax in the form of excise taxes on fuels in Europe, or even China, which recently has also included the transport tax to the excise tax on fuel. Complaints in other countries for the collection of this tax, virtually no.
Unfortunately, the President’s initiative so far has not found support. Today the transport tax is not repealed. But since 2012, Russia has significantly raised the excise tax on fuel. In General, everything turned out as always. The excise tax raised about the transport tax is forgotten. Most interesting is that for the abolition of the vehicle tax was “for” all factions of political parties of the State Duma and several ministries.
But the possibility is still there. In the end, what we have today: the increase in excise duty, rising fuel costs and predatory transport tax, a system of charging trucks (Plato), which led to an increase in the value of all goods in Russia. But most importantly, that Russia’s growing tax debts, most of which relates to the debt of physical persons of the transport tax.
This suggests that many people cannot afford to pay the transport tax, but just out of protest don’t want to pay it. As a result, the President of Russia has repeatedly had to declare a tax Amnesty to zero bad debts of citizens to the internal revenue service. Recall that at the end of last year, Vladimir Putin signed a law, initiated a tax Amnesty for the debts of the citizens and individual entrepreneurs, which were formed before 1 January 2015.
But, despite the fact that the idea of the abolition of the transport tax not found continue in the corridors of power, the bill nobody is completely hacked. So in the future, it is likely this bill will be considered in the state Duma and in our country will finally cancel the transport tax.
However, it is worth noting that if this happens, our economy will face rising inflation, as the transport tax in the form of increased excise tax on fuel will lead to a substantial increase in gasoline and diesel fuel. This, of course, will affect the rising cost of all types of goods and services. The spring rally in fuel prices, which has not gone unnoticed in society, I think that in the near future the government is unlikely to cancel the transport tax. As they say, all the time.
Who should pay the transport tax?
In accordance with the Tax code of the Russian Federation the transport tax are required to pay individuals and organizations that are in compliance with tax laws is responsible for payment of taxes.
That’s the kind of vehicle recognized under article 358 of the tax code objects of taxation:
- other self-propelled cars and mechanisms on pneumatic and caterpillar to a course
- sailing ships
- motor boats
- jet ski
- non-propelled (towed vessels)
- other water and air vehicles
Here is a list of vehicles that are objects of collecting of the transport tax:
- – rowing boats and motor boats with an engine capacity of not exceeding 5 horsepower
- – cars, specially equipped for use by disabled persons, and cars with engine capacity to 100 horsepowers (up to 73.55 kWt), received (acquired) through the bodies of social protection of the population in accordance with the law
- commercial sea and river vessels
- – passenger and freight sea, river and air vessels in the ownership (on the right of economic management or operational management) of organizations and individual entrepreneurs, the main activity is passenger and (or) cargo transportation
- – tractors and self-propelled combines of all types, special vehicles (milk tankers, cattle trucks, special vehicles for transportation of poultry, machines for transportation and application of mineral fertilizers, veterinary care, maintenance), registered agricultural producers and used during agricultural works for the production of agricultural products
- – vehicles owned by the right of operational management to Federal Executive authorities and Federal state authorities in which the legislation of the Russian Federation provided military and (or) equated service
- – the vehicle under investigation, while confirming the fact of their hijacking (theft) document issued by the authorized body
- – planes and helicopters of the sanitary aviation and of the medical service
- – ships registered in the Russian international register of vessels
- – offshore stationary and floating platforms, offshore mobile drilling rigs and vessels.
When you can not pay the transport tax?
Few people know that not all citizens are required to pay motor vehicle tax. Under current law, as the transport tax is a regional tax, respectively, each region has the right to impose in its sole discretion exemptions for certain categories of citizens or certain categories of vehicles. Including privileges for transport tax are governed by article 361.1 of the Tax code of the Russian Federation.
In particular, from the transport tax for physical persons in relation to the vehicle having a maximum mass exceeding 12 tonnes which are registered in the system “Platon”, if the sum of the system is greater than or equal to the sum of the estimated transport tax in the same tax period.
With regards to the regional benefits of the transport tax, depending on the region each subject of the Russian Federation decides what to grant exemptions from payment of vehicle tax. For example, in Moscow, is the local law No. 33 dated 9.07.2008 of the year “On transport tax”, which spelled out in detail who can not pay the transport tax. That’s who is in the city of Moscow is exempt from paying vehicle tax:
- – organizations providing services on transportation of passengers by city passenger transport of the General using, – for vehicles transporting passengers (except a taxi)
- – residents of special economic zones of technology-innovative typecreated in the territory of the city of Moscow (hereinafter – the special economic zones), in respect of vehicles registered in these residents, from the moment of inclusion in the register of residents of special economic zone. Exemptions are granted for a period of 10 years starting from the month of registration of the vehicle. The right to benefit is confirmed by the extract from the register of residents of special economic zone issued by the management body of the special economic zone
- – an organization recognised as management companies of special economic zones and engaged in activities to implement agreements on the management of special economic zones, in respect of vehicles registered in these organizations, since the conclusion with the authorized Government of the Russian Federation the Federal Executive authority agreements on the management of special economic zones. Exemptions are granted for a period of 10 years starting from the month of registration of the vehicle
- – managing company of the international medical cluster, and project participantsconcluded agreements on the implementation of the project with the management company of the international medical cluster and those in the international medical cluster, the implementation activities of the project, in respect of vehicles registered by the managing company of the international medical cluster and the participants of the project. The participants of the project benefit is provided since the conclusion of the agreement on the implementation of the project with the management company of the international medical cluster
– Heroes of the Soviet Union, heroes of the Russian Federation, citizens awarded with order of Glory of three degrees, for one vehicle, registered to citizens of the specified categories
- – veterans of the great Patriotic war, invalids of the great Patriotic war for one vehicle, registered to citizens of the specified categories
- – combat veterans, invalids of operations for one vehicle, registered to citizens of the specified categories
- – disabled persons of groups I and II for one vehicle, registered to citizens of the specified categories
- – former juvenile prisoners of concentration camps, ghetto, other places of forced contentscreated by fascists and their allies during the Second world war, for one vehicle, registered to citizens of the specified categories
- – one of the parents (adoptive parents), guardian, guardian of the disabled child for one vehicle, registered to citizens of the specified categories
- – those who have cars with engine power up to 70 horsepower (up to 51,49 kW) inclusively – for one vehicle of the specified category that are registered on these individuals
- – one of the parents (adoptive parents) in a large family for one vehicle, registered to citizens of the specified categories
- – individuals entitled to receive social support in accordance with the Law of the Russian Federation from may 15, 1991 N 1244-I “About social protection of citizens, podvergshihsja to influence of radiation owing to accident on the Chernobyl NPP”, the Federal laws of November 26, 1998 N 175-FZ “About social protection of citizens of the Russian Federation, podvergshihsja to influence of radiation owing to accident in 1957 at the production Association “Mayak” and discharges of radioactive waste into the Techa river and dated January 10, 2002 N 2-FZ “About social guarantees to citizens exposed to radiation from nuclear tests at the Semipalatinsk test site”, for one vehicle, registered to citizens of the specified categories
- – individuals who within the divisions of special risk direct part in tests of nuclear and thermonuclear weapon, liquidation of failures of nuclear installations on means of arms and military equipment for one vehicle, registered to citizens of the specified categories
- – individuals who received or have suffered radiation sickness or became disabled as a result of tests, doctrines and other works connected with any kinds of nuclear installations, including nuclear weapons and space technology for one vehicle, registered to citizens of the specified categories
- one of the guardians of a child with disabilities recognized legally incapable by a court for one vehicle, registered to citizens of the specified category
However, it should be noted that the Moscow privileges on payment of the transport tax does not apply to water, air vehicles, snowmobiles and snowmobile. Benefits do not apply in respect of vehicles with a capacity of more than 200 HP (147.1 kW).
What happens if you don’t pay on time vehicle tax before December 1?
For late payment of vehicle tax tax legislation provides for the collection of fines for each day of delay, which depends on the rate of the Central Bank of the Russian Federation.
So, under the current legislation for each day of delay penalty is charged in amount 1/300 from the key rate of refinancing of the Central Bank of Russia. However, the rate of the Central Bank of the Russian Federation is constantly changing. For example, starting from 17 September 2018, the Central Bank raised the refinancing rate to 7.5%.
Accordingly, the more your amount outstanding under the transport tax, the greater the amount of fines will accrue each day to the total amount of debt.
By the way, please note that the calculation of fines for individuals and legal varies. For example, penalties for arrears of payment of the transport tax for legal. individuals calculated by some other algorithm. So, in the first 30 days of delay after the statutory period for payment of the transport tax to a legal entity charged penalties based 1/300 of the refinancing rate of the Central Bank per every day of delay. Further penalties are calculated at 1/150 of the refinancing rate of RF Central Bank for each day of delay.
Yes, of course, after several tax amnesties declared by the President, many car owners considered that simply do not pay the transport tax, with the expectation that in the future Vladimir Putin will once again forgive all tax arrears citizens.
But we would not advise you to tempt fate without paying motor vehicle tax. First, to comply with the laws is a civic duty of each of us. Including timely payment of mandatory taxes. Secondly, do not forget that the debt tax is likely to be in the service of judicial bailiffs, which could take against you, enforcement proceedings.
In this case, you will provide first time for voluntary payment of the debt. If you don’t pay the debts, then you will apply measures of forced collection of debt. In this case, in addition to the debt you will seek the Executive collection. Additionally you can seize Bank accounts or to write off the debt by force.
Also your property can be seized. Including the bailiff may impose you a ban on travel outside the Russian Federation. But the worst thing that bailiffs are entitled to restrict the validity of your driver’s license until full repayment of the debt. Think about whether this.