MOSCOW, July 5 (RAPSI) - The State Duma has approved in its third reading a law to increase taxes for luxury cars worth over three million rubles. The law drafted by the Ministry of Finances pursuant to President Vladimir Putin's address to parliament introduces increased vehicle tax rates.

The law states that passenger cars costing between 3 ($90,469) and 5 million ($150,782) rubles and one to three years old will be subject to a 10% tax increase. If the vehicle is up to two years old, the tax increase is 30%. For cars up to 12 months old the tax will increase by 50%.

Owners of cars that are less than five years old and cost between 5 and 10 million ($301,564) rubles will pay a double rate. Owners of cars that cost between 10 and 15 million ($452,345) rubles and are less than 10 years old, and cars that cost over 15 million rubles and are less than 20 years old will be subject to a triple rate tax.

The average cost of cars will be calculated by the Ministry of Industry and Trade. The list of vehicles worth three million rubles on average will be published every year, by March 1, on the ministry's official website.