Bill drafted in Ukraine to lift excise tax on all car imports

The authors note that the rates that are in effect contradict the Tax Code, namely the definition of social justice.

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A bill has been registered in the Ukrainian parliament proposing to cancel the excise tax on imported motor vehicles.

"The draft law indicates that the excise tax on cars violates tax policy," as reported by Finance.ua with reference to bill No. 2132.

The authors note that the rates that are in effect contradict the Tax Code, namely the definition of social justice: taxes and fees should be set in line with the solvency of taxpayers.

The bill says that people with low solvency buy cheaper cars, while high excise taxes, combined with high rates, are several times higher than the price of the car itself, which is tax discrimination against people.

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Thus, lower taxes on cheaper vehicles are being proposed.

"Since the excise tax on vehicles is such that it generally violates the basic principles of tax policy, any attempts to change the excise rates, which will depend on any technical, age-related or other characteristics, as well as all attempts through excessive taxes to encourage people to buy newer cars for which they don't have enough money will still contradict the current legislation of Ukraine and cannot fulfill the declared function," the bill says.

As UNIAN reported, last week the Rada postponed fines for the owners of imported cars with EU registration plates.

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