12:29 11.09.2015

Finance ministry proposes introducing tax on luxury cars irrespective of engine type

3 min read
Finance ministry proposes introducing tax on luxury cars irrespective of engine type

The Finance Ministry of Ukraine has proposed that a tax on luxury cars irrespective of their type of engine should be introduced, Finance Minister Natalie Jaresko said at a briefing in Kyiv on Monday.

"What do I mean? Some owners of inexpensive cars are to pay [tax] today, as they have engines with a capacity of over 3,000 cubic meters, while drivers of Porshe and other cars do not pay, as they have engines of 2,000 cubic meters, for example. We propose that the tax only on luxury cars is introduced, irrespective of engine [types]," she said.

Earlier, it was reported that a list of luxury cars (10-15 models) will be drawn up by the Cabinet of Ministers of Ukraine.

However, Director General of the Ukrainian Association of Car Importers and Dealers Oleh Nazarenko wrote on his Facebook page that this approach is imperfect, as there are inexpensive models which are considered to be luxury brands (for example, Toyota Yaris cars sell for UAH 312,000).

"Then should the resolution include exact names of models worth over UAH 1 million? And if each month any plant would produce a new model, does the cabinet plans to amend the resolution? What about inflation? The price of some cars has increased, and the new resolution is to be issued again?" Nazarenko said.

At present, Ukraine has a transport tax of UAH 25,000 a year on passenger cars manufacturesd less than five years ago with an engine capacity of more than 3,000 cubic centimeters, which was introduced this year.

KYIV. Sept 11 (Interfax-Ukraine) – The Finance Ministry of Ukraine has proposed that a tax on luxury cars irrespective of their type of engine should be introduced, Finance Minister Natalie Jaresko said at a briefing in Kyiv on Monday.

"What do I mean? Some owners of inexpensive cars are to pay [tax] today, as they have engines with a capacity of over 3,000 cubic meters, while drivers of Porshe and other cars do not pay, as they have engines of 2,000 cubic meters, for example. We propose that the tax only on luxury cars is introduced, irrespective of engine [types]," she said.

Earlier, it was reported that a list of luxury cars (10-15 models) will be drawn up by the Cabinet of Ministers of Ukraine.

However, Director General of the Ukrainian Association of Car Importers and Dealers Oleh Nazarenko wrote on his Facebook page that this approach is imperfect, as there are inexpensive models which are considered to be luxury brands (for example, Toyota Yaris cars sell for UAH 312,000).

"Then should the resolution include exact names of models worth over UAH 1 million? And if each month any plant would produce a new model, does the cabinet plans to amend the resolution? What about inflation? The price of some cars has increased, and the new resolution is to be issued again?" Nazarenko said.

At present, Ukraine has a transport tax of UAH 25,000 a year on passenger cars manufacturesd less than five years ago with an engine capacity of more than 3,000 cubic centimeters, which was introduced this year.

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