The Cabinet: because of the law of avtonomera budget will annually lose 2 billion UAH.
The Cabinet of Ministers of Ukraine endorsed the draft law designed to reduce the excise tax on customs clearance of vehicles with foreign registration. However, the government notes that because of its adoption of the state budget will annually lose 2 billion UAH.
This is stated in the conclusion of the Cabinet to the relevant draft law No. 8487.
“The proposed reduction in the excise tax on passenger vehicles may lead to reduction of receipts in the budget by 2 billion UAH per year”, – the document says.
The bill is not submitted proposals for financial support or the covering of possible losses of the budget that is not consistent with article 27 of the Budget code of Ukraine, noted in the Cabinet.
However, officials believe that the imposition of the proposed excise tax rates, particularly on used cars older than 10 years, may become a significant obstacle for increasing the volume of domestic production of passenger vehicles.
“In addition, the implementation of the legislative initiative may lead to increase in volumes of import to Ukraine and legalization of the imported used vehicles, especially those that have been in use for about 10 years”, – said in the conclusion.
Earlier in the State fiscal service said that in Ukraine 58 thousand vehicles with European registration are in violation of the terms of stay.
Recall that on 11 July in the center of Kiev near the building of the Verkhovna Rada and the government building held a rally demanding affordable customs clearance of imported cars. In particular, the protesters demand the abolition of the government decree of 20 June. This resolution of the Cabinet of Ministers as part of an experiment to increase customs revenues have expanded police powers to control the customs officers and allowed the police round the clock to stay in the zones of customs control at checkpoints across the state border.
June 13, the Verkhovna Rada adopted in first reading a bill to reduce the excise tax on automobiles (No. 8487) and on strengthening control over the movement and use of cars registered in other States (No. 8488), was developed by the Verkhovna Rada Committee on tax policy to resolve the situation with the dominance of cars on avtonomera.
Under the proposed amendments, the basic excise tax rates are as follows: €50 – for vehicles with petrol engine, €75 with diesel. The amount of the excise tax will be equal to the base rate multiplied by the ratio of the engine and the coefficient of age.
Ratio of the engine can be calculated according to this formula: the volume of the engine divided by 1000. Ratio of age – the number of complete calendar years from the year following the year in which the production of cars, to the year of determination of the tax rate.
Bill No. 8488 proposes to establish fines for violation of term of stay of cars in a foreign room in a transit mode. In addition to the current penalty in the amount of 8.5 thousand UAH for violation of the period of more than ten days, it is proposed to introduce a penalty for a violation of the deadline from 20 to 30 days 85 thousand UAH, more than 30 days (as well as loss or razumeetsya vehicle) – 170 thousand UAH or confiscation of the car by court order.
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