Rada adopts at first reading deregulation of used car market

The Verkhovna Rada of Ukraine has approved at first reading bill No. 9083, which envisages deregulation and denationalization of the used vehicle trade market, announced Head of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, Danylo Hetmantsev.

"The Verkhovna Rada approved at first reading bill No. 9083, of which I am the initiator," he wrote on his Telegram channel on Tuesday.

Hetmantsev reminded that before the war, the used car market amounted to 1.7 million cars per year, and in 2023, it was 780,000.

"This year, we expect 1.5 million, and only 2.5% of this is sold legitimately. The state receives an average of UAH 19,800 from the sale of a car legally. From the sale illegally – 0," he wrote.

At the same time, the head of the parliamentary committee said that there is an obstacle to the operation of the legal market – the requirement for additional registration of cars to intermediaries "with a bunch of unnecessary certificates."

"The cancellation of meaningless state registration of used cars by the trading organization itself, even if they buy them as goods for further resale, will be a guarantee for bringing the shadow market into the light, expanding the activities of legal car dealers, and eliminating schemes through which the budget loses taxes," Hetmantsev said, commenting on the bill.

As reported, bill No. 9063 on the abolition of state registration of used cars to trading organizations that buy them as goods for further sale was registered in the Rada on March 6, 2023.

Among its co-authors are Hetmantsev, MPs Yaroslav Zhelezniak (Holos parlaimentary faction), Maryana Bezuhla, Yevhenii Brahar (Servant of the People), and Dmytro Razumkov (not a member of any faction).

Official car importers and dealers said that deregulating the used car market will not lead to price increases since the official market sets prices and no one will pay more than the car is worth.