Ukraine may introduce "old age" tax on used cars imports

The corresponding bill is expected to be submitted in the next two to three weeks.

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Ukrainian MP from the Petro Poroshenko Bloc parliamentary faction, Robert Gorvat, says the parliament's tax and customs policy committee has prepared a bill to introduce the "old age" tax related to the used cars imports.

"Restricting car imports through environmental standards is a temporary method, and it's wrong. Almost no one does it this way in European countries and worldwide. It would be a normal thing to make someone who would like to buy a car pay for its 'old age.' The more a car pollutes the atmosphere, the more its owner must pay," the official told a press conference June 6.

According to the lawmaker, the bill will be submitted in the next two to three weeks.

In addition, Gorvat and a group of other parliamentarians developed an alternative bill with the same objectives.

Read alsoSales of new cars in Ukraine grow by 10% in Jan-May

"The bill stipulates a differentiated excise, when registering a car, as in the case with an 'old age' tax. The older a car is, the greater is the excise," he said.

The MP has added that if none of the draft laws are adopted, the lawmakers may extend law No. 1389-19 (bill 3251 of November 7, 2015), setting preferential rates for excise duty on used car imports until December 31, 2018.

As UNIAN reported earlier, on June 9, 2017, the Verkhovna Rada, Ukraine's parliament, passed a law on postponing until January 1, 2020 the introduction of the Euro-6 environmental standard for cars.

The law on reducing excise duty on used car imports came into force in Ukraine on August 1, 2016. The law is valid until December 31, 2018.

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