Tax on new passenger cars in Ukraine may soar from 2021

The tax on new passenger cars in Ukraine may soar from 2021.

This is reported by the First Business Channel.

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It says that members of the parliamentary majority have prepared a bill to change the tax rate for passenger cars.

Nowadays, Ukrainians every year pay tax set at 375 sums of the minimum wage if their car is worth UAH 2.25 million (US$80,000) and higher. According to estimates, this amounts to UAH 25,000 (US$889) per year. However, cars that are older than five years are not taxable.

According to the new document, the tax on cars will increase. If the law is passed, cars worth 200 sums of the minimum wage (UAH 1.2 million, or US$42,600) that are eight years old and newer will be subject to taxation.

Estimates show that the annual tax will increase to UAH 36,000 (US$1,280) per car. The lawmakers believe that this is compensation for the elimination of excise duty on customs clearance of cars.

Who pays tax on cars

• Taxpayers are individuals and enterprises (including foreign ones) registered as owners of cars.
• If a person or entity owns several taxable vehicles, tax is paid per each car.