The Cabinet of Ministers of Ukraine has proposed a legislative initiative that would introduce a military tax upon the first registration of vehicles in the country. This innovation will apply to all new and used vehicles registered for the first time in Ukraine.
According to government bill No. 11416, which has already been sent to the Verkhovna Rada for consideration by the relevant committee, the military fee will be 15% of the cost of the car. If this bill is adopted, it could lead to an increase in the cost of cars in Ukraine by 15%.
Currently, when registering cars, owners pay a fee to the pension fund in the amount of 3 to 5% of the cost of the car. The new military fee will be an additional burden on buyers of both new and used cars registered for the first time in Ukraine.
Who does the innovation concern?
The draft law applies to both individuals and legal entities registering cars. The only exception is made for persons with disabilities who receive cars in accordance with current legislation.
The military duty will be levied not only on new cars, but also on used cars imported into Ukraine for the first time and not previously registered in the country. However, the military duty will not be levied on the domestic resale of used cars that have already been registered.
The draft law still needs to go through two readings in the Verkhovna Rada before it can enter into force. After being passed by the parliament, the document must be signed by the president and officially published.
