The Cabinet of Ministers of Ukraine presented a legislative initiative, which provides for the introduction of a military levy upon the first registration of cars in the country. This innovation will apply to all new and used cars that are registered for the first time in Ukraine.
According to the government draft law No. 11416, which has already been sent to the Verkhovna Rada for consideration by a specialized committee, the military levy will amount to 15% of the cost of the car. If this draft law is adopted, it may lead to an increase in the cost of cars in Ukraine by 15%.
At the moment, when registering cars, owners pay a fee to the pension fund in the amount of 3 to 5% of the car's value. The new military levy will be an additional burden on buyers of both new and used cars that are registered in Ukraine for the first time.
To whom does the innovation apply?
The draft law concerns both individuals and legal entities that register cars. An exception is made only for persons with disabilities who receive cars in accordance with current legislation.
The military tax will be charged not only on new cars, but also on used cars that were imported to Ukraine for the first time and were not previously registered in the country. However, in the case of internal resale of used cars that have already been registered, the military tax will not be charged.
The draft law still has to go through two readings in the Verkhovna Rada before it enters into force. After the adoption by the parliament, the document must be signed by the president and officially published.
