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Businesses Suffering Under New Tax Law In Russia's Far East


Used cars are unloaded at the port in Vladivostok

Used cars are unloaded at the port in Vladivostok

VLADIVOSTOK -- Businesses involved in used cars imports in Russia's Far East are collapsing due to a new tax law that came into effect on January 12, RFE/RL's Russian Service reports.

The chief of the Far East Customs Department, Igor Vlasenko, told journalists that the number of the used cars imported from Japan to Russia through Vladivostok has dropped dramatically in the past month.

According to Vlasenko, the Russian state treasury will lose over $1 billion in customs taxes this year because of the changes.

Dmitry Peniyaz, a member of the Vladivostok City Council and the leader of the Union for Far East Drivers' Rights, told RFE/RL that hundreds of thousands of people have lost their jobs, including car dealers, drivers, and cleaners, since the new tax law was introduced.
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