12:24 08.07.2013

VAAID asking president to veto law on vehicle recycling tax

2 min read

The All-Ukrainian Association of Car Importers and Dealers (VAAID) has asked Ukrainian President Viktor Yanukovych to veto the bills on recycling old vehicles and on amendments to the payment of the ecological tax for their recycling to the Tax Code that were passed by the Ukrainian parliament on July 4, 2 013.

"Today, we've asked the Ukrainian president to veto the laws adopted," VAAID Director General Oleh Nazarenko told Interfax-Ukraine last week.

He said that the main reason of the association is the fact that no country has such a tax, apart from Russia.

"On April 4, 2013, the government in Russia submitted a draft law, which does not cancel the law, but removes discrimination: now everyone will pay [the tax] – both vehicle importers and manufacturers," he added.

"Everywhere people receive money for getting rid of old cars, as the car can be used as scrap metal and one can receive money for this. If the law takes effect, we'll have to pay for the right to recycle vehicles free of charge," Nazarenko said.

Answering the question how the prices of cars for Ukrainian consumer grow, he said that the prices will increase by UAH 5,000-200,000, adding that the tax will apply to the cars bought in the period when the law takes effect.

Nazarenko believes that the adoption of the law is a result of lobbying for the interests of some Ukrainian companies.

"I understand that certain people entered the Party of regions, and the party supported [the law], but I don't understand the behavior of Communists who allegedly stand for people and [at the same time] introduce the new tax," he said.

Nazarenko added that all the Ukrainian manufacturers will be exempted from paying the tax.

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