Ukrainian President Viktor Yanukovych has instructed the government to draw up a bill introducing amendments to the Tax Code and other legislative acts in order to improve the legislation on the recycling of vehicles.
“This bill should foresee the cancellation of the coefficients that are applied to environmental tax rates for the disposal of vehicles and determine the directions of funds to be received from the payment of such a tax in order to develop a network of centers for the acceptance and disposal of old vehicles,” First Deputy Head of Ukraine’s Presidential Administration Iryna Akimova told Interfax-Ukraine on Saturday.
She said that the head of state had also instructed the Cabinet of Ministers to take measures to revise the provisions of legislative acts on the disposal of vehicles that are not consistent with the commitments of Ukraine undertaken upon its entry into the WTO.
The government should also draft measures to protect the legal and economic interests of the owners of old vehicles, in particular, by envisaging the possibility of receiving compensation for the vehicles transferred for recycling, as well as remove barriers to the admission of economic entities to operations on the disposal of vehicles.
“The immediate fulfillment by the government of these tasks will help improve the state of the environment and ensure the observance by Ukraine of its international obligations,” Akimova said.
As reported, Yanukovych signed laws on the introduction of amendments to the Tax Code of Ukraine on the payment of an environmental tax on the disposal of old vehicles and on the disposal of old vehicles.
On July 4, the Ukrainian parliament adopted two draft laws on the recycling of old vehicles and amendments to the Tax Code on the payment of a vehicle recycling tax. According to the documents, the tax is paid both by importers and vehicle manufacturers, apart from those having a welding-painting-assembly cycle.
The basic tax rate for passenger cars is UAH 5,500 and the rate for other vehicles (buses, trucks, dual-purpose vehicles or special vehicles) is UAH 11,000.
The law takes effect on September 1, 2013.
