Given the intensification and development of related areas, namely service stations, the sale of spare parts, related services, increased mobility and economic activity of the population, it is unknown whether total budget losses exist at all. "Due to the shortage and rise in price of used cars abroad, imports would be critically low.
#FLASH FOR ISWIFF PROFESSIONAL#
Simply put, Ukrainians would not have brought so many cars of such brands, models and characteristics if there was no "zero" customs clearance, says Levko Prokipchuk, former head of Lviv Customsand an expert on the practical application of customs legislation of the Association of Professional Customs Intermediaries. Otherwise, customs duties, and especially excise tax, made their import economically unprofitable. The number of imported cars and their model range is such only because taxes did not have to be paid. However, to calculate these losses linearly, ie considering the potential losses of all customs duties from which Ukrainians were de jure exempted from "zero" customs clearance,inadmissible. The first is that the budget is allegedly losing. There are, in fact, two arguments left for the abolition of "zero" customs clearance today. However, statistics also refuted this argument: mostly Ukrainians brought 14-year-old cars from an affordable price range in the range of $ 2-5 thousand euros from abroad.Įven the chairman of the "tax" committee, Danylo Getmantsev, admitted that there is essentially no national car manufacturer in Ukraine, and the import of cars from abroad does not harm the domestic manufacturer. The next reason was allegedly the mass import of expensive and luxury cars with tax exemption, although the law did not restrict the import of such cars.
#FLASH FOR ISWIFF REGISTRATION#
As of today, the queues for registration of personal cars have almost disappeared due to the satisfaction of deferred demand, and with them this argument has disappeared. Initially, there were queues at the border, which arose due to global changes in traffic flows. The main arguments for the abolition of "zero" customs clearance are constantly changing. Why do they want to abolish "zero" customs clearance? For an objective analysis, the situation should be analyzed comprehensively, and each of the pros and cons should be considered. So what should be the solution? Compromise, fair and based on facts rather than assumptions, according to the Institute of Research car market. That is, the proposed solution also will not solve the problem of affordable customs clearance of cars.
For the category of cars that Ukrainians need the most - worth up to $ 8,000 - this tax often exceeds the cost of the car. For the rest of the martial law, they offer a VAT rate of 7% (instead of 20%) and a duty of 5% (instead of 10%), but offer a refund of excise tax.
Experts from the Institute of Car Research have gathered arguments and facts that will help in making a decision.Īlternative Bill 7418-1, initiated by a group of peopleʼs deputies, proposes to leave import benefits for combatants. However, there is no single position among the deputies, and the Main Scientific and Expert Department of the Verkhovna Rada has made many comments on the bill. Tomorrow, at a meeting of the relevant "tax" committee, MPs will consider Bill 7418, which proposes, in particular, to return VAT, duties and excise duties on vehicles.
Customs clearance conditions and taxes and car imports remain at the top of the hot topics.
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