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Ukraine Proposes To Lower Import Duties On Cars By Up To 90%

In response to growing demand for cars from overseas, the Ukrainian government has proposed to lower import duties on autos. This is separate from the previous law which cut import duties and taxes on electric car imports.

Nina Yuzhanina, head of the parliamentary committee for tax and customs policy, proposed cut the import duty for modern gasoline vehicles by up to 90%. The proposal also seeks to limit the import of older used vehicles, by increased the import duty on cars manufactured between 1996 - 1999 to 7,500 EUR. If the Ukrainian government agrees on the lower import duties, it's expected to go in effect later this year.

Here's the proposal in full:

Vehicle Age Proposed Duty Current Duty
New car (1600 cc) EUR 150 EUR 427
Up to 5 years old EUR 300 EUR 2,629
2005-2009 EUR 750 EUR 3,906
2000-2004 EUR 1,500 EUR 3,906
1996-1999 EUR 7,500 EUR 3,906

Ukraine is currently one of the largest importers of electric cars from the US. We expect to see higher demand for affordable family sedans if the proposal passes.

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