The Cabinet of Ministers of Ukraine has approved the cancelation of coefficients applied to the ecological tax rates for recycling written-off vehicles, Environment and Natural Resources Minister Oleh Proskuriakov has said.

He said that the draft law was approved by the government at a cabinet meeting on Wednesday, October 30, although the document is to be elaborated jointly with the Income and Tax Ministry and the document will be sent to parliament.

As reported, the law on recycling of written-off vehicles took effect on August 8, 2013 and the law on amendments to the Tax Code on the payment of the ecological tax took effect on September 1, 2013.

The president has ordered the cabinet to revise the laws on recycling, bringing their requirements in line with the requirements of the World Trade Organization (WTO) and cancel the coefficients.

The European Union has warned against a very serious impact of the introduction of the law on recycling old vehicles on Ukraine on the EU-Ukraine economic relations.

The law on recycling vehicles passed by the Ukrainian parliament on July 4, 2013.

The vehicle recycling tax for new cars (depending on the engine volume) will vary from UAH 4,730 to UAH 30,250, that for new commercial trucks and buses (depending on the total weight) – from UAH 8,800 to UAH 14,740.