Poroshenko enacts laws legalizing cars imported in breach of customs and tax laws

Updated

The president also demands that the Pension Fund regularly report on the amount of funds it will get from the legalization of the cars.

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Ukrainian President Petro Poroshenko has signed bills Nos. 8487 and 8488 into law to legalize cars with European license plates imported in breach of customs and tax law.

"This is an uneasy compromise between the state and de-facto owners of cars , [a compromise] between those who pay taxes and those who just have got a chance to become an honest taxpayer. And in order that the latter should not have the slightest doubt that their money is used for good deeds, we've decided to channel the funds into the support of pensioners," Poroshenko wrote on Facebook on November 23.

"All funds – every single hryvnia – will be channeled into the Pension Fund to cover its deficit, to increase pensions in keeping with inflation and raise payments to those whose pension level is the lowest," he said.

The president also demands that the Pension Fund regularly report on the amount of funds it will get from the legalization of the above-mentioned cars.

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He also encourages the de-facto owners of cars with foreign registration earlier brought into Ukrainian customs territory on temporary importation or transit terms without payment of customs clearance to pay all their customs costs quickly, the presidential press service said.

"We gave a 50% discount if you do it quickly. Legalize the car, and most importantly – close the border for smugglers, increase responsibility, learn to live in a civilized state," Poroshenko added.

According to the president, the signed laws create conditions for registration of such cars and their owners, also known as "Evrobliakhery," or "Euroblachers" (from Polish "blacha" meaning a "plate") no longer have grounds for mass rallies.

As was earlier reported, "Euroblachers" blocked traffic in the center of Kyiv on November 20 as part of a large-scale protest campaign.

Read alsoUkraine to introduce new rules for customs clearance of imported cars with foreign registration

Ukraine's parliament on November 8, 2018, passed a bill to reduce costs of customs clearance of cars earlier brought to Ukraine on temporary importation or transit terms. The legislation introduces basic excise rates depending on the type of the engine and engine displacement. In particular, the rates will be EUR 50 for a three-liter petrol engine and EUR 100 for petrol engines with greater displacement, while those for diesel engines will be EUR 75 (up to 3.5 liters) and EUR 150 (for over 3.5 liters).

On the same day, the parliament adopted a bill to tighten control over the use of cars with foreign registration. In particular, the bill says, a person who brought a car to Ukraine on transit or temporary importation terms will not be able to transfer it to ownership or use by other individuals. It will also be prohibited to use such a vehicle for corporate purposes or for earning money. The violation of the established rules will entail a fine worth UAH 34,000, or over US$1,200.

The adoption of the two draft laws was supported by the "Euroblachers," but they demanded certain amendments that would have further reduced customs clearance costs. The parliament did not take into account the amendments, which triggered "Euroblachers'" acts of protest and they blocked some highways and roads across Ukraine. The protesters demanded that the president veto the laws.

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