The UKROP party requires abolishing an extortionate excise duty on cars and vehicle bodies of foreign production. The relevant initiative is envisaged by the draft law No. 8505 “On Amendments to the Tax Code of Ukraine regarding the exclusion from the list of excisable goods the vehicles and bodies to them specified in commodity positions 8702, 8703, 8704, 8707, 8711, 8716 UKT ZED.”
Thus, the buyers of foreign cars will pay the state only VAT, import duty and fee to the Pension Fund, which together makes up 35% of the cost of the vehicle.
The document was prepared by the MPs from UKROP Taras Batenko, Oleksandr Dubinin, Iryna Konstankevych, Valentyn Didych, Oleksandr Shevchenko, Viktor Shevchenko, Vitaliy Kupriy and the activists.
“The bill proposes to exclude vehicles and their bodies from the list of excisable goods by amending a number of articles of the Tax Code. The collection of excise duty on cars contradicts the world practice and Ukrainian legislation,” explained the UKROP representatives.
In addition, it is forbidden to import new vehicles and bodies to the customs territory of Ukraine if they originate from the occupying country. The restriction also applies to those vehicles that were in use and were registered in the territory of the aggressor country or imported from the occupied territory of Ukraine.
According to the co-founder of the public union “Affordable Cars”, UKROP member Mykhailo Katruk, the purpose of the bill is to make vehicles for ordinary Ukrainians cheaper. The UKROP’s initiative is a fundamental and honest decision for everyone.
The activist noted that along with the abolition of the excise duty, the Verkhovna Rada should lift restrictions on Euro environmental standards by a separate decision.
The relevant bill No. 5561 “On Amendments to the Law of Ukraine “On certain issues of importation into the customs territory of Ukraine and registration of vehicles” with regard to the formation of a civilized market for used cars” has already been registered in the Parliament by UKROP. The document provides for the abolition of the Euro eco-requirements for all used foreign cars.
“If the parliament adopts these two bills, the Ukrainians will be able to import any cars of any year of production without any restrictions. In this case, the car owner will only have to pay the VAT, the import duty and the fee to the Pension Fund,” explained Mykhailo Katruk.
The UKROP party has recalled that in Ukraine most of the consumer goods were excluded from the list of excisable products at the end of 1999. However, due to the support of the state-owned company AvtoZAZ, the transport tax on imported cars is still not canceled. Subsequently, the artificial restriction on the import of quality used cars was lobbied by Bogdan Corporation and the AutoInvestStroy group of companies. At the expense of the received preferences, auto importers that made vehicles in Ukraine mainly from Russian and Chinese automobile sets got overpayments.
“Despite the fact that auto importers have lobbied their business for two decades, they were not able to create a series of cars that can compete on both external and domestic markets,” stressed the UKROP representatives.
At the same time, the Parliament registered a draft law No. 8506 “On amendments to Article 3 of the Law of Ukraine “On sources of financing of the road industry of Ukraine” regarding exclusion of vehicles from the list of excisable goods”. The document provides for the removal of the excise tax on vehicles from sources of financing of the road industry.
Earlier, the head of UKROP, MP Taras Batenko, said that the authorities want to save the money of buyers of luxury foreign cars at the expense of ordinary Ukrainians. This concerns the bills No. 8487 “On Amendments to the Tax Code of Ukraine regarding the excise taxation on motor vehicles” and No. 8488 “On Amendments to the Customs Code of Ukraine and certain legislative acts of Ukraine concerning the importation of vehicles into the customs territory of Ukraine”, which propose another scheme of customs clearance of foreign cars.
The documents that have been recently registered in the Verkhovna Rada by the representatives of the ruling factions do not prohibit the import of cars at reduced rates from Russia. Thus, the parliament can allow buying almost new and elite cars from a country that has been in war with us for the fifth year.
