Ukrainian MPs from the “Samopomich” faction abstained from supporting the bill № 1393 of December 11, 2014 (“On Amendments to the Customs Code of Ukraine concerning the scheduling of transit traffic for road transport”). Alternatively, it is suggested to introduce a reduction of the rate of excise duty on second-hand cars.
We have now too high excise tax that must be paid when importing vehicles into the territory of Ukraine. Therefore, the people who live in border areas and bought their cars abroad have Polish, Slovak and other foreign license plates and transit customs regime is applied in such cases.
Given the deadline of the transit (10 days), people are forced to cross the border of Ukraine every 5 days. This doesn’t only create problems and inconveniences for the owners of these cars, but also overloads the customs posts and causes queues at the customs checkpoints which promotes bribery and corruption at the customs.
However, extending the transit deadline to 30 days, as offered by the bill, will not solve the problem completely. We need to address the issue by eliminating the root cause – excessive excise taxes. This is the approach supported by “Samopomich” – to reduce the rates of the excise duty on second-hand cars imported into the territory of Ukraine.
In order to implement this, the corresponding bill № 3251 of July 10, 2015 “On amendments to the subsection 5 of section XX “Transitional Provisions” of the Tax Code of Ukraine on promotion of development of the market of used vehicles” has already been submitted. Its co-authors are MPs from the “Samopomich” faction, Andriy Zhurzhiy and Tetiana Ostrikova.
The reduction of excise tax rates, on the one hand, will allow the owners of the cars purchased abroad to “come out of the shadow” and to abandon the transit regime, and on the other hand – to replenish the state budget due to the excise tax paid by such owners.
December 9, 2015 the bill was supported by the Verkhovna Rada Committee on Taxation and Customs Policy, and in the near future it is going to be reviewed at the plenary session of the Verkhovna Rada of Ukraine.