You're reading: Kyiv offers Moscow to introduce national regimes applying vehicle recycling tax

Ukraine has offered to Russia to introduce national regimes of recycling tax on imported cars, the Ukrainian government's envoy for cooperation with Russia and the CIS countries, Valeriy Muntiyan, has said.

“This issue could be put up for consideration at the Yalta sitting of
CIS leaders for further adoption and the signing of an
intergovernmental agreement. [It is proposed] for us to have national
regimes for Ukraine and Russia,” he said during a video conference call
between Moscow and Kyiv.

A meeting of the leaders of CIS Members States will be held in Yalta on September 28.

As reported, the law on the introduction of a 30% vehicle recycling
tax took effect in Russia on September 1, 2012. According to the law,
the tax will be paid on every vehicle imported to Russia, with the aim
of protecting the environment.

Lawyers say the introduction of the vehicle recycling tax is a
violation of a national regime, one of the basic principles of the World
Trade Organization (WTO).

Russia’s national regime foresees that the country is obliged to
provide importers of cars no worse conditions than for Russian car
developers.

In turn the Ukrainian Cabinet of Ministers on September 12 announced a
resolution to impose its own recycling taxes on Russian automobiles and
buses, the top rates of which are virtually the same as those imposed
by Russia on September 1.