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INTERNATIONAL BUSINESS NEWS
December 26, 2008 10:00:02 AM

A newly-launched Russian opposition group led by former world chess champion Garry Kasparov added its voice to a growing chorus of protests on Thursday against increased taxes on imported cars.

Supporters of Kasparov's Solidarity movement gathered a petition urging Prime Minister Vladimir Putin to reverse a decision to raise the taxes which was made earlier this month, saying the move was "major error" which "will not help the Russian automobile industry".

"You should admit your mistake and then you will be forgiven. It would be an act of strength. Real weakness is the stubborness that you are displaying now."

The government earlier this month raised tariffs on used cars from abroad -- notably from nearby Japan -- to shield Russian automakers from the worst of the global economic crisis.

Japanese-made Nissan and Toyota cars are highly popular in Vladivostok and an estimated 200,000 people in the city's region work in the import, sales and servicing of foreign cars.

The tariff measure was aimed at boosting demand for Russian-made cars after several factories froze production for a month over the New Year period due to sluggish sales.

However the move has sparked a growing backlash with several mass demonstrations.

The head of the ruling party in the far eastern region of Primorye quit earlier this week, with reports saying Putin's United Russia party had forced his resignation as he had supported the demands of protestors against the hike.

Kasparov, a long-time Kremlin critic, launched his new movement earlier this month when he vowed to "dismantle" Putin's regime.

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