Duty-free customs clearance of cars is canceled from tomorrow

Duty-free customs clearance of cars is canceled from tomorrow

Tomorrow duty-free auto clearance is canceled

Illustrative photo from open sources

In Ukraine, from July 1, previously canceled customs duties, excises and 20% VAT on imported goods are returning. In particular, we are talking about the import of cars by citizens.

This is noted in the text of the bill No. 7418, reports the publication rbc.ua. 

The norms of the law

The Verkhovna Rada adopted the government bill on June 21. It is now being signed by the president, and its main provisions will come into force on July 1.

The law resumes taxation, which was canceled in March:

  • for goods imported by payers single tax of the first, second and third groups;
  • for enterprises that do not pay import duties;
  • for vehicles imported by citizens;

At the same time, the document exempts cars equipped with exclusively electric motors (one or more) from paying the fee to the Pension Fund.

Reasons for tax refunds

Government filed a bill to reinstate import taxes at the end of May. According to the Cabinet of Ministers, by that time 119,000 cars had been imported, the tax benefit amounted to UAH 13 billion, i.e. about 110 thousand hryvnias for each car.

By July 1, a total of 240 thousand cars will be imported without duties. In recent days, huge queues have formed at the border checkpoints.

In addition, benefits deprived the budget of UAH 3.5 billion in customs payments from enterprises and sole proprietors. Finance Minister Sergei Marchenko has repeatedly called for the return of everything to import taxes.

Cancellation of the list of critical imports

The NBU believes that the law on the restoration of taxes on the import of goods creates grounds for canceling the list of critical import goods, which has been in force since the beginning of the Russian invasion.

The list of critical import goods has been revised upwards 18 times. Today it contains about 90% of all product categories.

The NBU believes that the restoration of duties and taxes on imports of goods and services is an important step towards regaining the ability of the foreign exchange market to balance itself. In particular, this will support the further recovery of production in Ukraine and will limit the growth rate of imports, which puts pressure on the foreign exchange market and on Ukraine's international reserves.

In addition, monthly budget revenues will increase. According to the Ministry of Economy, they will increase by UAH 3.5 billion per month.

BAGNET recalls that in March the Verkhovna Rada adopted a law on exemption from duties and VAT on imports of goods, imported by enterprises. The law also exempted vehicles imported by citizens from customs duties.

Prepared by: Sergey Daga