Business news from Ukraine

Verkhovna Rada has adopted as basis bill providing for deregulation of trade in used cars

The Verkhovna Rada of Ukraine has adopted as a basis the bill №9083, providing for deregulation and detenization of the market of trade in used vehicles, said the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Daniil Hetmantsev.

“Verkhovna Rada adopted as a basis the bill №9083 the initiator of which I am,” he wrote in his Telegram channel on Tuesday.

Getmantsev recalled that the market of used cars before the war was 1.7 million cars per year, in 2023 – 780 thousand.

“This year we expect 1.5 million and only 2.5% of this is sold in white. From the sale of a car in the “white” the state receives an average of 19.8 thousand UAH. From the sale in the “black” – 0″, – he wrote.

At the same time, the head of the parliamentary Committee reminds that for the work of the “white” market there is a hindrance – the requirement of additional registration of the car on the intermediary “with a bunch of unnecessary certificates”.

“The abolition of meaningless state registration of used cars by the trading organization on itself, even if it buys them as goods for resale – will be a pledge for the withdrawal of the market from the shadow, the expansion of the activities of “white” auto traders and the elimination of schemes by which the budget underpays taxes,” – commented the bill Getmantsev.

As reported, the bill № 9063 on the abolition of state registration of used cars on trade organizations that buy them as a commodity for further sale, registered in the Rada on March 6, 2023.

Among its co-authors are Hetmantsev, MPs Yaroslav Zheleznyak (Golos faction), Maryana Bezuglaya, Yevhen Bragar (“Servant of the People”), Dmytro Razumkov (non-faction).

Official car importers and dealers noted that deregulation of the used car trade market will not lead to an increase in prices, as the official market dictates prices and no one will pay more than a car costs.

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In March this year, Ukrainians registered 8.3 thousand used cars imported from abroad during the war, Ukravtoprom reported.
“This is much less than a year earlier (-76%), but this result was 15 times higher than the March market for new passenger cars,” the association’s website said on Thursday.
As reported, registrations of new passenger cars in March 2022 fell by 16.5 times compared to the “covid”, but peaceful March of last year – up to 546 units.
According to the Association, the most popular used car in March this year was Volkswagen Golf with 484 registrations, Renault Megane is second with 472 units, Volkswagen Passat is in third place with 422 customs cleared and registered cars.
Skoda Octavia continues the list (339 units), and Ford Focus closes the top five with a score of 217 units.
Taking into account March registrations, almost 69,000 used cars imported from other countries received Ukrainian license plates in January-March, which is six times more than new passenger cars over the same period.
As reported, in the first quarter of last year, 87.7 thousand units were registered in Ukraine. used foreign cars imported from abroad, which exceeded the registration of new cars by four times.
On March 24, 2022, the Verkhovna Rada of Ukraine, in order to stimulate important imports for the country, among a number of goods for the period of martial law, exempted the import of vehicles by citizens from taxation (cars, motorcycles, trucks and buses).



The primary registrations of imported used cars in Ukraine in January-June 2019 totaled 250,100, which is almost six times more than a year ago, the Ukrautoprom association has reported.
The Volkswagen brand remains the leader of registrations in the first six months of 2019 (48,793), Opel is in the second position (24,414), Audi is third (19,072), Renault is fourth (18,822), and Skoda is fifth (17,766.).
According to the association, in June, the Ukrainians registered 19,200 imported used cars, which was the lowest since the beginning of the year, but compared to June last year, registration increased 2.2-fold.
Cars aged from 5 to 10 accounted for the largest share in the registrations of used imported cars – 46%. Cars older than 10 years covered 35% of the June market, the remaining 19% were cars under the age of five years.
The most popular Volkswagen brand registered 2,960 vehicles last month, followed by Skoda (1,742), Renault (1,588), Ford (1,393) and Opel (1,321).

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