The Ecology and Natural Resources Ministry of Ukraine has proposed cancelling the adjusting coefficients for the basic rate of the vehicle recycling tax: UAH 5,500 for passenger cars and UAH 11,000 for the rest of the vehicles.
The draft law on amendments to the Tax Code of Ukraine on the cancellation of the coefficients to the ecological tax was posted on the ministry’s Web site on Wednesday.
The ministry also proposes expanding the law on environmental protection with a clause under which 100% of the recycling tax is sent to the environmental protection fund.
In addition, the bill proposes excluding the obligatory availability of the ecological management system certified under ISO 1400 standards or similar national standards at vehicle dismantling centers.
The document also proposes restricting state oversight in the area of vehicle recycling to one executive power body – the Ecology and Natural Resources Ministry.
As reported, the law on recycling vehicles passed by the Ukrainian parliament on July 4, 2013 and signed by Ukrainian President Viktor Yanukovych on July 31 was published on July 7, 2013 and took effect on August 8, 2013. The law on amendments to the Tax Code on the payment of the ecological tax takes effect on September 1, 2013.
The law says that the sum of tax for each vehicle is paid, taking into account the basis rate and adjusting coefficients pegged to the engine volume and depending on the age of the car.
The laws passed say that Ukrainian automobile manufacturers are exempted from paying a recycling tax with guarantees of creating shredder centers.
The president has ordered the cabinet to revise the laws on recycling, bringing their requirements in line with the requirements of the World Trade Organization (WTO).
The European Union has warned against a very serious impact of the introduction of the law on recycling old vehicles on Ukraine on the EU-Ukraine economic relations.
