How the VAT increase to 22% will affect car prices: experts' opinion

Tax increases and new recycling fee rules will lead to a significant increase in car prices

From January 1, 2026, the VAT rate in Russia has been increased from 20 to 22%, reports Autonews.ru. Experts interviewed by the portal believe that this will lead to an increase in prices for cars and related services.

The new tax is included in the cost of goods, so the increase will inevitably affect end consumers. According to experts, the nominal increase will be about 2%, but real prices will depend on demand and discounts offered by dealers.

An additional factor in the price increase will be the new methodology for calculating the recycling fee, introduced in December 2025. Now its size is tied to engine power, and preferential rates are maintained only for cars up to 160 hp.

Experts predict that the combined effect of the VAT increase and the revision of the recycling fee will lead to an increase in prices for domestic cars by 8-13%, and for imported cars - up to 25%. Electric vehicles and hybrids will become more expensive first of all.

As a result, Russians may update their cars less often and use existing ones longer. This will reinforce the trend of aging car fleet and increase the demand for car service services.

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