Of this number, 56 thousand are used cars, for the import of which 4.3 billion UAH of customs duties were transferred to the budget.
Over the first ten months of 2017, the clearance of imported used cars increased sixfold.
Previously, on average, about a thousand such cars entered the country monthly, but now this figure has reached almost six thousand per month, and in October it exceeded the mark of seven thousand cars.
The reason for this surge was the amendments made to the Tax Code of Ukraine to support the used vehicle market. Thanks to them, excise tax rates on used passenger cars decreased by 10–20 times.
As a result, the total tax burden decreased and now amounts to approximately 35–40% of the car's price. Before the adoption of the law, the excise tax was so high that the charges reached 90% of the value — in fact, the car was taxed almost at its full price.
This norm came into effect on August 1, 2016, when the law “On Amendments to Subsection 5 of Section XX ‘Transitional Provisions’ of the Tax Code of Ukraine regarding the stimulation of the development of the market for used vehicles” came into force, and will be relevant until December 31, 2018.
Both individuals and companies can import cars at reduced excise rates.
