The Finance Ministry of Ukraine has proposed that a tax of Hr 25,000 on cars with an engine capacity of over 3,000 cubic meters should only apply to luxury cars, and a tax of up to Hr 1,000 should be introduced for all owners of cars which are no older than five years, Deputy Finance Minister Olena Makeyeva has said.
‘A tax of Hr 25,000 is only for luxury cars: the clearly defined list of models should be, Europe has it, and these are 10-15 models. The rest (of car owners) should also pay the tax, but it should be less than Hr 1,000 a year,’ she said at a briefing in Kyiv.She said that the ministry recently held a discussion with the owners of cars who agreed that the collection of Hr 800 a year is acceptable if the funds are used to improve roads.
As for property tax, Makeyeva said there are no plans to drastically change it, in particular, benefits (when property owners are exempt from paying the tax) will be retained and increased taxes are only to be introduced for the owners of elite property: apartments with a gross area of over 300-350 square meters and houses with a gross area of over 500 square meters.
‘Maybe, we should revoke benefits for commercial property – industrial premises and warehouses,’she added.
