13:30 20.03.2013

Increase in car import duty is normal practice to protect national producers, says first vice premier

2 min read
Increase in car import duty is normal practice to protect national producers, says first vice premier

The decision of the interagency commission for international trade to introduce special duties on imports of new passengers cars irrespective of their origin and exports from April 13, 2013 aims at protecting Ukrainian goods producers and development of the sector in the country, First Vice Premier Serhiy Arbuzov said at a press conference in Kyiv on Tuesday.

"There is nothing [extraordinary] in this. This is a normal practice of the state for it to protect its goods producers. It's really not a step that would please our middle class, but if we do everything the right way, protect our producers and make it so that the cars bought by the middle class are cares made in our country, this will be better for our economy and our citizens," he said.

As reported, on March 14, 2013, the government's Uriadovy Kurier newspaper published a decision of the Interagency Commission for International Trade approved on April 28, 2012, to introduce special duties on imports of new passengers cars with engines from 1,000 to 1,500 cubic centimeters at a rate of 6.46%, and cars with engines from 1,500 to 2,200 cubic centimeters at a rate of 12.95%, irrespective of the country of origin and export.

The initiators of the investigation were public joint-stock company Zaporizhia Automobile Plant, private joint-stock company Eurocar and subsidiary Automobile Assembly Plant 2 of Bogdan Motors Automobile Company.

The car manufacturers said that the sphere is in critical condition and the introduction of the import tariffs could help them use their plants at full capacity.

Ukrainian car importers, in turn, opposed the introduction of the tariffs and stated that prices of cars will grow, and sales will drop.

According to lawyers, the introduction of the car import tariffs contradicts the regulations of the World Trade Organization.

Ukrainian Prime Minister Mykola Azarov said that the measure was temporary.

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