The main argument is improving the trade balance. However, not only the car market will suffer. A temporary import duty is planned to be introduced on all types of goods, except for essential ones. This is exactly the initiative described in draft law No. 1562, which the Verkhovna Rada is going to consider at today's session.
According to the Cabinet's "specialists," essential goods include: oil, natural gas, nuclear fuel, electricity, coal, gasoline, diesel fuel, and humanitarian aid.
Everything else will be subject to an additional tax of 5 to 10%. Motor vehicles were unlucky, with a rate of 10% set for them. The government explains the introduction of the new tax by the deterioration of Ukraine's balance of payments and a significant reduction in the state's gold and foreign exchange reserves. Both legal entities and individuals will pay the temporary duty when importing goods into the customs territory of the country.
For the automotive market, such a tax is tantamount to a disaster. Most likely, prices will rise by 12% (taking into account the new duty and VAT). And this is despite the fact that over the year, prices for new cars have actually increased by almost 100% in hryvnia equivalent.
