Yanukovych approves vehicle recycling tax

Ukrainian President Viktor Yanukovych has signed a law on the introduction of a vehicle recycling tax, according to a statement about the last stage of the adoption of bills, which was posted on the website of the Verkhovna Rada on Friday.

The head of state signed bill No. 0936 on the recycling of vehicles removed from operation and bill No. 0975 on the introduction of amendments to the Tax Code of Ukraine on the payment of an environmental tax on the recycling of vehicles removed from operation. Yanukovych signed the laws on July 30 and 31.

As reported, on July 4, the Verkhovna Rada adopted laws on the recycling tax, the amount of which for a concrete vehicle is calculated based on base rates and coefficients that are linked to the engine volume and whether the vehicle is new or used.

The base tax rate for passenger cars is UAH 5,500, and the rate for other vehicle (buses, trucks, or special vehicles) is UAH 11,000. Domestic producers are exempt from paying the tax under the guarantees of the creation of utilization facilities.

The initiative has already been criticized by the European Union, which expressed hope that Ukraine will make every effort to ensure that this law does not come into force.

Adapted from ukrinform