The law on the cancelation of the vehicle recycling tax and the excise duty on re-equipped trucks took effect on April 18, 2014.

According to the law on amendments to the Tax Code of Ukraine on the cancelation of the vehicle recycling tax and taxation published in the Holos Ukrainy newspaper, the law takes effect from the moment of its publication.

The Ukrainian parliament on April 9, 2014 supported at second reading the law on the cancelation of the vehicle recycling tax and the excise duty on re-equipped trucks.

The ecological tax on recycling of old vehicles was introduced on September 1, 2013. Automobile manufacturers were exempted from paying the tax if they create vehicle disassembling facilities.

The authors of the bill said that the tax is a discriminative one and it is not in line with the requirement of the World Trade Organization (WTO).

The sums of the recycling tax on new passenger cars amounted to UAH 4,730-30,200, for used cars – UAH 9,460-60,500 depending on the engine, and for the rest of vehicles – UAH 8,800-14,700 for new and UAH 17,600-29,400 for used vehicles depending on their weight.

The national budget for this year plans to allocate UAH 960 million to compensate expenses of old car accepting centers using funds from the payment of the ecological tax.

The collection of the excise duty on passenger cars (and other vehicles for carrying people, apart from buses) re-equipped from trucks imported to Ukraine, on which the excise duty is not paid, took effect from January 1, 2014.

According to the statistics, in January-March 2014 primary registration of used vehicles fell by 87% year-over-year.