New passenger car sales won't exceed 2,500 cars in 2016 in case of the adoption of a draft law on the promotion of sales of used cars (No. 3251), which proposes to reduce excise duty on used cars by several times (on average by 10 times), the All-Ukrainian Association of Automobile Importers and Dealers (VAAID) considers.

According to a press release from the VAAID, the optimistic scenario foresees the sale of 58,000 passenger cars in 2016.

"A 5% import fee will be canceled from January 1, 2016, and in case of the stability of all other taxes (except for the introduction of a 10% import duty and a 10-17% anti-subsidy duty on cars from Russia), 58,000 new cars will be sold in 2016," reads the report.

The press release notes that taking into account the average price of an imported car being $19,800 (according to the state Fiscal Service), the national budget will receive the following funds from one car: an import duty of 10% ($1,980), VAT of 20% ($3,960), excise tax (on average $100), i.e. the final shortage will come to $350.32 million (UAH 8.76 billion).

At the same time, the VAAID said if excise tax on used foreign cars is reduced by several times and the sales of new cars sharply fall, the national budget will receive only $15.1 million (UAH 377.5 million) from imports.