Excise duties on passenger cars (and other vehicles for transporting people, except for buses), reequipped from excise-free commercial cars imported to Ukraine, came into force on January 1, 2014.
As reported, the law on amendments to the Tax Code regarding the
rates of certain taxes and tax benefits, which foresee this innovation,
was adopted by the parliament on December 19 and signed by the president
of Ukraine on December 27, 2013.
According to the Income and Tax Ministry, about one-third of
commercial cars imported to Ukraine after refitting are registered in
the state automobile inspectorate as passenger cars that are subject to
excise duties.
According to the ministry’s estimates, additional revenues from this
tax to the national budget could amount to around Hr 300 million.
The automobile market experts consider that this innovation would
affect the business of “car deliverers” and enterprises refitting cars,
most of which are located in Western Ukraine.
Ukraine from January 1, 2014 also prohibited the imports and the
first registration of imported or manufactured in the country vehicles
(new and used) corresponding to environmental standards that are lower
than Euro-4.
