The Income and Tax Ministry of Ukraine has sad that the size of a special duty on passenger cars with petrol engines from one to 2.2 liters introduced from April 14, 2013 could be halved.

"From April 14, the special duty is halved. This is don under the aegis of the Economic Development and Trade Ministry," Deputy Income and Tax Minister of Ukraine Vitaliy Naumenko told Interfax-Ukraine.

As reported, earlier CEO of the All-Ukrainian Association of Auto Importers and Dealers (VAAID) Oleh Nazarenko said that the special duty rates, taking into account the law requirements on the liberalization of special measures which are in effect for over one year, should be cut.

The requirement on the gradual liberalization of the measures via regular intervals during the term of their application after the one-year period when they are in effect is stipulated in the agreement on the WTO safeguard measures and the law on the application of special measures to imports to Ukraine.

According to the VAAID, the introduction of special duties did not help developing Ukrainian automobile industry, as the pace of reduction of car production is still high after the introduction of the special duties – 34%.

Additional special duties on imports of new passenger cars with petrol engines of 1,000-1,500 cubic meters set at 6.46% and 1,500-2,200 cubic meters at 12.95%, regardless of the country of origin and export, came into effect in Ukraine on April 14, 2013.

Japan late in October 2013 initiated consultations with Ukraine regarded limitations levied in spring 2013 on the import of passenger cars, and the EU and Russia joined the consultations.

According to experts, special duties redistributed the Ukrainian market and demand on cars with diesel engines grew.

According to 2013, the ZAZ brand first became the leader of the market.