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Russia's upper house of parliament rejects transport tax hike

11:53 18/11/2009

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Thousands protest new import duties on used cars in Russia

The upper house of Russia's parliament rejected on Wednesday a bill to double the motor vehicle tax that had sparked protests when it was approved by the lower house.

"The transport tax in the version proposed to us envisages taxes on all transport vehicles to be increased by two times. We examined the proposed bill and believe that ... in the current conditions it would be wrong to double tax rates and suggest that the State Duma discuss the draft law anew," said Yevgeny Bushmin, chairman of the Federation Council budget committee.

The adoption of the bill by the State Duma last week caused protests by motorists across Russia. Speaker Boris Gryzlov later said that the bill needed to be redrafted.

The Federation Council has proposed that the two houses of parliament set up a reconciliatory commission to work out a new version of the transport tax law.

MOSCOW, November 18 (RIA Novosti)

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Russia's upper house of parliament rejects transport tax hike

11:53 18/11/2009 The upper house of Russia's parliament rejected on Wednesday a bill to double the motor vehicle tax that had sparked protests when it was approved by the lower house.>>

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