New vehicle recycling tax likely to result in price hikes

A lifting crane carries a car body at a car at a recycling facility in St. Petersburg on March 23, 2010.© AFP

Importers of cars in Ukraine have new challenges ahead. On July 4 Ukrainian parliament passed two bills, No. 0975 and No. 0936, in a second reading, the first of which imposes a tax for recycling, or utilizing, transportation vehicles on manufacturers and importers, while the latter establishes the procedure in which it should be done. The bills come on the heels of a special duty on imported passenger cars with 1-2.2 liter petrol engines.

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