Dealers' serious expense item, according to the VAAD, includes various bribes that car dealerships are forced to pay to various regulatory bodies on the way from the border to the dealership. These costs amount to about 10-12% of the cost of a new car.
As for Ukrainian car manufacturers, their 'kickbacks' amount to 23-25% of the car's cost. So, the previous government's declared 'protection of the domestic producer' is actually a large-scale corruption scheme that allows individual officials to receive excess profits.
Let us remind you that in addition to these expenses, when registering any car for the first time in Ukraine, a recycling fee must be paid. Importers, in addition, pay a 10% duty, to which a special duty has been added since May 2013.
The VAAD emphasizes that abolishing most of these additional burdens will allow forming acceptable prices for new cars, increasing sales, and, accordingly, contributions to the budget. Even Ukrainian manufacturers urge the government not so much to 'help' car plants as to give them the opportunity to work normally.
Furthermore, the VAAD proposes to introduce a European system of purchase and sale, as well as car registration, excluding the traffic police from this chain.
Let us remind you that earlier we told you how prices for new cars are formed in Ukraine.
