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Called cons of lowering the excise tax on used cars

Названы минусы снижения акцизов на б/у автомобилиThe expert explained what are the disadvantages of reducing excise duties on used cars.

The law on the reduction of excise duties on used cars allows Ukrainians within two years to choose and buy a car in Europe, but does not create the market for used cars.

This was stated by the lawyer of law firm “Ilyashev and Partners” Nikolai Aleksyuk.

“The arrival of the Ukrainian market of private auto dealers — following the example of EU countries — this law is not conducive,” said the lawyer.

Even more controversial is the limit on the purchase of cars manufactured before 1 January 2010, as for most potential buyers interest occurs relatively cheap production cars 2002-2010.

See also: preowned cars at reduced excise: short and clear

“The age restriction was set by the legislator for compliance with environmental safety. At the same time, any calculations of potential harm to the environment explanatory note to the bill does not contain, therefore, in this context, the legislator was clearly acting, not forgetting about the interests of dealers and importers of new cars”, — says the expert.

He also added that the skeptics accuse the authors of the law is that buying a car from Central and Western Europe (countries with the lowest prices on used cars) requires obtaining Schengen visas, this practice will narrow the circle of persons who will be able to use the temporary benefits.

We will remind that on may 31 the Verkhovna Rada adopted a law on temporary reduction of rates of excise duty for used cars. Therefore, the excise duty is reduced for the period up to 31 December 2018. On 4 July the President of Ukraine Petro Poroshenko finally signed a law on used cars.

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