Ukraine has committed to reduce import duties on manufactured in the EU cars. Price forecasts
From 1 January 2018 Ukraine needs to reduce the import duty on cars manufactured in the European Union. The fee will gradually decrease over the next ten years. At the same time, dealers say that significantly impact on prices is not result.
The gradual reduction of customs duties on imported cars provided by the Agreement on free trade zone between Ukraine and the EU, and applies to both new cars and old. This writes UNIAN.
Fiscal service and Ministry of economic development on the basis of an agreement created and brought to execution schedule for reducing customs duties on vehicles, the area of origin is the European Union. In accordance with the schedule to wait for the zeroing of duties, Ukrainians will have another seven to ten years depending on the chosen car. An average of 10% duties on import of passenger cars should be reduced within 10 years annually by 0.9%.
Parliament abolished the import tax and excise duty on electric vehicles
THE SCHEDULE OF REDUCTION OF IMPORT DUTIES ON CARS FROM THE EU
New cars with petrol engine:
– volume up to 1000 CC duty will be reduced from 7.5% of the customs value in 2017 and 6.3% in 2018 5% in 2019 and 2023 will be 0%;
– with capacity from 1,000 to 1,500 CC will be reduced from 8.2% of the customs value in 2017 – up to 7.3% in 2018 and 6.4% in 2019 up to 2026 will be 0%;
– capacity from 1500 to 2200 CC and from 2200 to 3000 cubic cm, the rate will remain unchanged until 2019 – 5%, and decreased to 0% until 2023.
New vehicles with diesel engine:
– up to 1500 CC and 1500 CC to 2500 CC duty will be reduced from 8.2% of the customs value in 2017 – up to 7.3% in 2018 and 6.4% in 2019 up to 2026 will be 0%;
a volume of more than 2500 cubic centimetres, the fee will be reduced from 7.5% of the customs value in 2017 and 6.3% in 2018 5% in 2019 and 2023 will be 0%;
Used cars up to 5 years with all types of engines:
– reduced from 10% of the customs value in 2017 – up to 7.3% in 2018 and 6.4% in 2019 up to 2026 will be 0%.
The Parliament has simplified the taxation of Ukrainian electric
It’s important to not just mark the car belonged to the company of the member countries of the EU, and the car was produced in the territory of the European Union. For example, at reduced duties to import into Ukraine a car of the American brand Ford, if it was assembled at the factory in Germany. But cannot be started at reduced rates VW, assembled at the factory in Mexico. To import a car from the EU at reduced duties, the importer will have to show the customs the certificate of origin of the car.
Experts of the automotive market are confident that the reduction of duties will not affect retail prices for cars – too small a share of this reduction is the cost of the car.
“This will not affect the market. The reduction of duties by 0.9%. The car cost 10 thousand dollars of 0.9% is $ 90. Is this the decline?”, – says the General Director of the Ukrainian Association avtoimporterov and dealers Oleg Nazarenko.
He noted that the machines are not cheaper and in ten years after zeroing duties. Each year, the cost of machinery is increasing, and lower fees only partially able to compensate for her height.
Car dealers also consider that the reduction of duties will not lead to an increase in the share of the European auto market of Ukraine. After all, European cars more Asian.
The end user will not feel the difference in price from the reduction of Ukraine’s import duties on cars. In addition to duty on retail price of cars ultimately affect the rates of excise duty, VAT and Pension Fund tax, which account for the lion’s share of payments for foreign cars. Therefore, the annual reduction of duties by 0.9% will remain virtually invisible in the dynamics of the price of the car.
At the same time set a limit on concessional rates for cars imported from the EU – not more than 45 thousand cars in 2018. If the limit for the year will be exceeded, the fee will return to the level of 10%. One Association of manufacturers in the first nine months of 2017 notes that total imports of passenger cars in Ukraine amounted to 109.6 thousand units, the import from EU countries is 69.6 thousand pieces If the stats are confirmed officially, the limit is exceeded the concessional duty will not work.
Videobr exempted from excise duty operations on import of cars with an electric motor
December 8, 2017, 08:54
- The European Union
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