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.