Comparative Analysis of the Tax Burden on Car Ownership and Car Use in the EU Countries and Russia

Abstract

Abstract The purpose of this article is to compare the tax burden on car owners and car users in the countries of Europe and in Russia and to use the findings for identifying areas of improvement in the system of fiscal instruments under the present conditions of transport development. The article examines the European experience in the construction of fixed and variable transport taxes to regulate the behavior of the car owners. The theoretical background collection of taxes for the use of a car is considered. The article looks the size of fixed taxes in different countries depends on the technical characteristics of the car that determine its capability to have a negative impact on the road network and environmental factors. A conclusion is made that in Russia, the system of transport taxes lacks logic. The level of fixed taxes that is rather higher for Russia generates two effects: it hinders the growth of car ownership and preserves the negative structure of the car fleet. The low level of variable taxes (fuel tax and tolls) encourages the intense use of passenger cars. The approach will spur further growth of car ownership rates in Russia, making people car dependent. A reform of variable transport taxes is needed to regularly increase them. Such an increase should also be accomplished by regularly increasing fuel excise duties and introducing congestion charges and toll charges on more roads, bridges, tunnels, and conservation areas.