The Verkhovna Rada adopted the law, which will bring a significant reduction in the excise duty on the import of used cars, reports AUTO-Consulting (RU).
This will create a favorable market environment for the successful selling of used cars and generate an additional source of new jobs.
The bill to reduce the excise tax applies to cars manufactured after January 1, 2010.
It should be noted that the Ukrainians are unlikely to get to buy cars for 300-500 euros, as the cars older than 6 years are not keeping up with Euro-5 standards.
The law comes into force on day 1 of the month following the month of publication. That is, if the law №3251 be published in June, the reduced rates of excise duty will apply from 1 July 2016 and last until 31 December 2018, ie almost 2.5 years.
BACKGROUIND: Euro-5 – environmental standard regulating the content of harmful substances in exhaust gases. From January 1, 2016 Euro 5standart is required for all cars imported to Ukraine from abroad. This actually introduced a total ban on the import of cars produced before year 2008/2009 (or mandatory conversion of the engine under the current eco-standards).