Cars imported until September 1 will not rise in price due to car recycling tax

A car recycling tax will not be levied for the cars, imported before September 1.

Importing companies received a relevant explanation from the State Automobile Inspection on Friday, Kommersant Ukraine writes.

“The law has an ambiguous form of words on from what moment a duty is levied from an importer. The State Automobile Inspection's statement clearly says that we can sale automobiles ex warehouse by old prices,” marketing director of the AIS Group Serhiy Borovyk told the publication.

According to him, orders have been formed over three months back, therefore importers will hardly have stocks for a longer period with taking into consideration the planned annual suspension of the automobile assemblage.

The companies say that currently it is difficult to forecast how new rules of play will tell on the automobile market. “The clients may prefer the Ukrainian budget automobile against a foreign brand due to a price rise. At the same time, the automobiles with the average and large engine volume will rise in price, but only to the level, which will not frighten a client,” head of the car sales department of Volkswagen and Porsche Ukraine Serhiy Hosenko says.

To remind, the law on the car recycling tax is called to help national producers, who are exempt from the duty on condition they fulfill a number of law requirements, came into force on September 1. However, at the beginning of August, some producers have said that they do not manage to fulfill requirements of the law until September 1 and will have to pay the car recycling tax.

Adapted from ukrinform