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In Ukraine, they intend to introduce a tax on new cars

The Ministry of Finance introduced amendments to the draft tax reform, according to which all cars under the age of five years will be taxed.

If the project is approved, owners of low-cost cars will be required to pay the government a little less than a thousand hryvnias annually. Owners of premium cars will have to transfer twenty-five thousand hryvnias to the treasury each year.

This idea has already received criticism from experts and is unlikely to cause a positive reaction from Ukrainian motorists. In connection with the devaluation of the hryvnia, car prices in Ukraine have increased significantly, as a result of which cars are included in the “luxury” category, the price of which is from $ 45 thousand and more.

Recall that the tax on luxury cars entered into force on January 1, 2015, however, it applies only to those vehicles that have an engine capacity of three liters or more. Many consider this approach to the definition of "premium" cars unfair, since not all luxury cars are equipped with large engines. At the same time, middle class cars can have a similar unit.

The Ministry of Finance experts suggest a different approach: they intend to create a special list of luxury and premium cars that are subject to tax. This list should include 10-15 automobile brands, which will be elected and approved by deputies of the Verkhovna Rada.

According to economists, the introduction of new taxes will not lead to a substantial filling of the budget, since their administration is quite expensive.

However, the Deputy Minister of Finance of Ukraine Olga Makeeva is convinced of the opposite:

“The tax should be less than a thousand hryvnia, say, 800 hryvnia. For car owners under five years of age, paying 800 hryvnias per year is a little money. And for the budget it’s a lot of money that can be spent on road construction and infrastructure development, ”she says.

The draft amendments will be considered in the Verkhovna Rada of Ukraine already in September this year, and if the deputies vote “for”, the tax can be introduced from the beginning of next year. However, there is a high probability that on the eve of the elections, members of parliament will not support these amendments, as this can cause resistance from Ukrainian citizens.