15:21 13.07.2018

Rada passes bills on cars with EU license plates

3 min read
Rada passes bills on cars with EU license plates

Ukraine's Verkhovna Rada has supported in the first reading the bills on reducing excise tax on cars (No. 8487) and on strengthening control over the movement and use of cars registered in other states (No. 8488), which were developed by the Rada Committee on Tax Policy to address the proliferation of cars with foreign license plates.

Some 265 and 256 deputies voted for the measures, respectively, well over the 226 minimum votes required for passage.

According to the proposed bill No.8487 incorporating changes to the Tax Code, the basic rates of excise tax will be EUR 50 for cars with a gasoline engine and EUR 75 for diesel vehicles. At the same time, the amount of excise tax will be equal to the base rate multiplied by the engine factor and age factor.

The engine coefficient is proposed to be calculated using the following formula: the engine volume divided by 1,000. The age coefficient is the number of full calendar years from the year following the year of car production to the year of determining the tax rate, the parliamentary committee's press service said.

"Excise taxes calculated on a new basis will be much lower than those currently in effect, and the difference in the amount of rates for different cars will not be significant, while the excise tax on old cars will, of course, be higher due to an increase in the age coefficient, which will stimulate buy more new cars," head of the concerned committee Nina Yuzhanina said earlier.

Bill No. 8488 proposes to establish fines for violation of the period of stay of cars on foreign license plates in transit mode. In addition to the current fine of UAH 8,500 for violating the ten-day period, it is proposed to introduce a UAH 85,000 fine for violating the period from 20 to 30 days and a UAH 170,000 fine - or confiscation of the vehicle by court order - for more than 30 days (as well as the loss or disassembly of the vehicle).

According to the document, the penalty for violation of the period of stay of the car in the mode of temporary import is proposed to be set at the level of UAH 17,000 in case of exceeding the time limit by 10 to 20 days, UAH 85,000 - 30 days, and more than a month – UAH 170,000 or confiscation.

In addition, the draft law suggests that the State Fiscal Service (SFS) automatically inform the State Border Guard Service and the National Police about violators of customs rules for temporary importation or movement of cars with foreign registration.

As earlier reported, since July 11, protesters have gathered near the parliament building and Government House in central Kyiv to demand affordable customs clearance of imported cars. Demonstrators demand the abolition of a governmental resolution of June 20. The Cabinet decision was an experiment to increase customs revenues, expanding the powers of police officers to control customs officers and allowed police to stay in customs control zones near the state border around the clock.

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