The document proposes introducing an additional fee on all cars no older than five years. The amount of the payment will depend on the engine displacement.
Also, as part of the reform, it is planned to increase tax pressure on vehicles whose average market price exceeds one million hryvnias and which are classified as “premium” and “luxury” classes.
Ivan Miklos, an advisor to the Minister of Finance of Ukraine, said: “A truly radical reform is the introduction of a fiscal system that remains relatively neutral for the budget over a short period (the first year), but at the same time lays the foundation for noticeable economic growth, attracting investment, creating new jobs, and improving conditions for doing business.” The phrase sounds nice, but it remains a mystery how raising or introducing new fees can simplify life for entrepreneurs. In world practice, to attract investors, taxes are usually lowered, not raised.
But if you delve into the essence of the proposal, it becomes obvious: we are talking about banal double taxation. For those who have forgotten, let us remind you: we have all long been paying a transport fee that depends on the appetite of your car. This fee is already included in the price of every liter of fuel at the gas station. Therefore, the larger the engine displacement and, accordingly, fuel consumption, the more money goes to the treasury. The new payments are just another “honest” way to extract money from citizens’ pockets.
It is worth noting that Ukraine already has an additional tax on “luxury” cars in the amount of 25 thousand hryvnias per year. It applies to cars no older than five years, equipped with an engine with a displacement of more than three liters.
