Ukraine proposes Russia cancellation of vehicle recycling tax

19.09.2012 The vehicle recycling tax was introduced from 1st September 2012 on the territory of the RF and comprises a mandatory payment for entities and individuals on vehicles imported in Russia and also originated from Russia. The Law obliges private persons to organize utilization of vehicles and then dispose the car waste independently or by concluding a contract with special companies within prices approved by the Government.
Following this change on 12th September 2012 the cabinet of ministers of Ukraine published the resolution on introducing of vehicle recycling tax on buses and automobiles produced in Russia, rates of which correspond to the rates of the similar Russian tax.
As the first Vice - Prime Minister of Ukraine Valery Khoroshkovsky announced the mutual cancellation of the vehicle recycling tax would become the optimal decision for both states, on the subject of which negotiations are held.

On the basis:  http://www.kmu.gov.ua/control/

Expert’s opinion

Evidently, that strengthening of tax burden before the parliament elections in Ukraine would not positively influence on image of the current legislator, that’s why despite adoption of the above-named resolution on introduction of the vehicle recycling tax authorities are trying to cut angles through negotiating with the Russian side. It should be noticed that this tax is calculated according to a special scale, exactly, its coefficient increases proportionally the level of vehicle maintaining. Thus, the sum of tax can seriously touch the purses of both individuals and entities: from 25 to 45 thousand roubles on passenger cars, from 150 to 400 thousand roubles – on autotrucks.

Akhmetova Julia ( Paralegal of Moscow office )