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Parliament may enter the total exemptions on the import of used cars

Рада может ввести тотальные льготы на ввоз б/у автоThe new bill provides for several new exemptions for imports used car.

The Verkhovna Rada may introduce the so-called total benefits on the import of used cars from Europe.

So, in the Verkhovna Rada registered the bill No. 5562, which provides for the amendment of the transitional provisions of the Tax code “for the formation of a civilized market of used cars”.

The draft bill provides for several new exemptions for imports used car.

First, it is the extension of the validity period of concessional excise taxes, imposed in August 2016 for two years, for another two years — until 2020.

Second, the removal of restrictions on the list of cars that qualify for exemptions.

Note that at the moment, customs clearance can be cheaper only cars manufactured in 2010 and later. In the new bill proposed this rule to withdraw, in this case, the preferential excise tax act and old cars.

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Similarly, radical – completely obliterate – the deputies propose to deal with other constraints on preferential excise duties (possibility to import only one car, a ban on the sale during the year).

The explanatory Memorandum stated that, according Auroconsulting, the level of “motorization” in Ukraine is extremely low – on 1 thousand population accounted for 2.5 times fewer cars than even in Eastern Europe.

To catch up with the European average, Ukraine needs to acquire another 12 million cars, estimated by the MPs. A quarter of the domestic fleet is obsolete – almost 2 million cars celebrated its 25th anniversary. New cars sold in Ukraine not so much this year, they sell about 60 thousand, the following are projected for 90-100 thousand

To accelerate the renewal of its fleet, the deputies propose to remove restrictions for used cars. They also clarify that any restrictions could only give rise to new corruption schemes.

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Only in August, when they began to operate a preferential excise tax, identified 39 registration of transactions with violations, stated in the explanatory Memorandum.

According to people’s deputies in Ukraine annually preregistered 400 thousand cars, which indicates a high demand for used vehicles. So, say the MPs, if you remove all restrictions, the budget will not only not lose, but also will work.

Only for the duration of the preferential excise tax in Ukraine has imported more than 11 thousand b/u cars, paying more than 600 million UAH of taxes. So giving more bonuses of the Ukrainian drivers, the state has the opportunity to receive an additional 1.7 billion next year, estimated the authors of the bill.

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