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The initiative was taken by the A Just Russia faction. A project has been submitted to the State Duma, which implies the abolition of the tax by 2025, writes RIA Novosti. According to its authors, the fee must be decoupled from the power of the car’s engine: it should depend on how often the owner uses his vehicle, and be carried out through the payment of excise taxes.

In the explanatory note to the bill, deputies indicate that now “those who spend several hours driving a car every day and those who go to the country only a few times a year” can pay equally.” They consider the pay-as-you-use principle more fair.

The authors propose to completely abolish the transport tax by amending the Tax Code. In this case, the regions will lose annual revenues amounting to about 200 billion rubles.

They propose to compensate for them by changing the system of excise taxes on gasoline produced in Russia, namely, transferring funds instead of the federal budget to the regional ones. This should cover approximately 70 percent of the lost revenue associated with the tax abolition.

It is still unknown when the bill will be considered, but proposals to revise the tax system have been coming for several years now. There were different ideas – both about a complete abolition of the tax, and about a partial one, for some categories of citizens and situations.

For example, last year it was proposed to reduce the tax for preferential Russians who drive powerful cars, and to exempt citizens with many children and those who inherited cars from it.

A thousand changes: new and modernized familiar models

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