Rail transit through Russia is getting more expensive
Price increases for rail transportations from Europe via Russia to Kazakhstan Enterprises focussing regular exports to Kazakhstan by use of railway transport will be facing considerable price increases. “Due to the customs union between Russia, Byelorussia and Kazakhstan that became effective with 1 July 2010, rail transit through Russia to Central Asia is becoming more expensive. Russia’s government takes the customs union as an occasion to introduce a value added tax of 18 per cent for railway transit through Russia to other countries of the customs union – thus to Kazakhstan“, Loxx Group announces in a press release. Transport service providers who are using railway transit through Russia for their Kasachstan traffic, will have to pass the increased costs to their customers. The value added tax is going to be effective from 1 August 2010 in any case. Russia’s national railway RZD considers even applying the tax retroactively from 1 July 2010. According to the Loxx Group’s statements the definite date is not yet known. |
