Kazakhstan may soon face an influx of old and environmentally hazardous vehicles due to recent changes in recycling fees in neighboring countries, warned Kanat Sharlapaev, Minister of Industry and Construction.
Sharlapaev expressed concern that the introduction of a recycling fee in Kyrgyzstan, coupled with an increase in Russia, could lead to a mass importation of outdated cars into Kazakhstan.
While Sharlapaev emphasized that these developments are unlikely to affect car prices in Kazakhstan, he noted that the country's relatively lower recycling fees and initial vehicle registration costs could make it an attractive destination for older vehicles from abroad.
"We are not currently discussing any increase in the recycling fee. However, it's important to observe how our neighbors are handling this issue. Not only are they maintaining their recycling fees, but they're also raising them," Sharlapaev stated. "Kyrgyzstan has established production lines for Chevrolet Cobalt and Onix and is planning to introduce a recycling fee. Kazakhstan, by comparison, lags behind all its neighbors in terms of recycling fees and initial registration costs."
Sharlapaev warned that the discrepancy in recycling fees could result in a surge of old car imports, which pose environmental risks and contribute to unsafe road conditions.
"This risk is quite real: other countries are taking measures to protect themselves from the import of what we might call 'junk cars,' but here in Kazakhstan, we seem to believe that no protective measures are necessary," he added.
In response to these developments, the Ministry of Natural Resources, Ecology, and Technical Supervision of the Kyrgyz Republic announced that the recycling fee is expected to be implemented in October 2024, pending approval by the Cabinet of Ministers.
The vehicle recycling fee is a mandatory charge applied when purchasing a new vehicle or importing a used one into the country. This fee is designed to cover the costs associated with recycling old and non-functional vehicles, thereby reducing environmental impact and promoting road safety.
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