Ukraine’s finance minister responds to criticism about a new car tax
Source: RBC-Ukraine
On Tuesday, Ukraine’s finance minister Serhiy Marchenko responded to the criticism over a plan to introduce a 15% tax on a new car purcahse.
The news about the new car VAT the govemernt calls ‘military-related’ got an angry reaction from car dealers who warned it would soon see car sales shifting to a grey market schemes.
Marchenko admitted this scenario was possible adding it can be addressed by law enforcement agencies.
He believes a new car purchase is not a ‘critical need’ at the times of war.
“We have a security issue, the house is on fire, and you’re saying we shouldn’t buy firefighting equipment but should rather buy a car. No problem, buy a new car, but additionally support the Armed Forces,” he explained.
The minister also reminded that no taxes are currently levied on the vehicles going to the security and defense sector.
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