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Motor vehicle tax, Moscow

Moscow: Authorities discuss abolishment of transport tax

Motorists in Moscow could soon see the end of the annual transport tax.

The Moscow City Duma is considering a bill that would abolish the tax, which is currently levied on all vehicles registered in the city. The bill was introduced by депутат Александр Козлов (deputy Aleksandr Kozlov) and is supported by the city's mayor, Sergey Sobyanin.

If passed, the bill would take effect on January 1, 2024.

The transport tax is a significant source of revenue for the city of Moscow, generating over 100 billion rubles (US$1.3 billion) in 2023. However, the tax is also unpopular with many motorists, who argue that it is a burden on car ownership.

Proponents of the bill argue that abolishing the transport tax would stimulate the economy and improve the quality of life for Moscow residents. They point out that the tax is a regressive tax, meaning that it disproportionately affects low-income households.

Opponents of the bill argue that abolishing the transport tax would create a budget deficit and lead to cuts in essential services. They also argue that the tax is necessary to discourage car ownership and reduce traffic congestion.

The Moscow City Duma is expected to vote on the bill in the coming weeks. If passed, the bill would be a major victory for motorists in Moscow.