Price increases for foreign cars are unavoidable: the law on recycling fee has been signed

The official website of the Verkhovna Rada reports that Viktor Yanukovych signed a law on transfer pricing and recycling fee on July 30.

According to the document, the base tax for passenger cars will be set at 5.5 thousand UAH, and for other vehicles, including buses, trucks, cargo-passenger and special vehicles, at 11 thousand UAH. At the same time, Ukrainian manufacturers are exempt from this payment provided they guarantee the creation of recycling facilities.

The final amount of the recycling fee will be determined by a special coefficient. For new passenger cars, it ranges from 86% to 550% of the base rate, which amounts to 4.73–30.2 thousand UAH, depending on the engine displacement. For vehicles older than three years, the coefficient reaches 530–3501%, i.e., 29.1–192.5 thousand UAH.

For new trucks, buses and special equipment, the coefficient is 50–290% (19–110.2 thousand UAH), and for used ones — 88–1180% (33.4–448.4 thousand UAH).

More details about the possible consequences of this law for car prices in Ukraine can be found in our publication: “What if... Yanukovych signs the law on recycling fee”.