Automotive issues

15/ 11/ 2017

Automotive Committee representatives participated in the meeting of the working group on drafting an integrated draft law on development of energy efficient and environmentally friendly transport in Ukraine, headed by the Chair of Subcommittee on Taxation of Individuals and Insurance Payments to Labor Remuneration Fund of Committee on Taxation and Customs Policy Robert Gorvat and Minister of Infrastructure of Ukraine Volodymyr Omelyan. During the meeting, were discussed eight draft laws aimed at development of electric transport in Ukraine.

Draft law proposed by the Ministry of Infrastructure is the most promising, which becomes the basis for creating a full cycle of electric transport production in Ukraine, formation of affordable prices for electric vehicles for Ukrainians, and promotion of business that uses this environmentally friendly transport. Draft law envisages the introduction of a zero rate of excise tax on electric cars, electric vehicles, electric motors and electric bicycles, temporary exemption from VAT on imports of electric cars, charging stations and components to electric cars, electric vehicles, electric motors and electric bicycles, on imports of components to charging stations, transport services on electric cars, as well as leasing and renting, cancellation of transport tax, allocation of 10% of communal, public parking lots for electric cars and free of charge parking, exemption from profit tax for battery producers, profit tax benefits for electric car batteries lithium producers, tax deduction for individuals in the amount of costs for purchase or re-equipment of an electric vehicle (returning up to 18% of car price) and exemption from tax on compulsory state pension insurance of electric cars (3-5%).

Additionally, during the meeting, was noted Ukraine’s potential to create a background for lithium batteries and batteries for electric cars, as well as an increase in demand for environmentally friendly transport.

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