Business news from Ukraine

MPS OFFER 10-15 YEAR PREFERENCES FOR DEVELOPING PRODUCTION OF ELECTRIC CARS IN UKRAINE

20 March , 2018  

Ukrainian MPs have proposed to exempt from taxation and paying imports duty for spare parts and car and truck bodies for assembly of electric vehicles (cars and trucks) and electric buses in Ukraine, exempt buyers of electric cars from paying pension tax and extractors of lithium, manufacturers of batteries and electric cars from paying profit tax. Bills Nos. 8159 and 8160 amending the Tax and Customs codes of Ukraine were registered in the Verkhovna Rada on March 19 by MPs Nina Yuzhanina, Ihor Kononenko, Maksym Burbak, Oleh Liashko, Robert Horvat and some other lawmakers.
Bill No. 8159 introducing amendments to the Tax Code and some legislative acts to stimulate the development of the electric transport industry in Ukraine proposes, in particular, that until December 31, 2028, imports of spare parts for the production of vehicles equipped with one or several electric engines are exempted from paying VAT.
For the same period, the bill proposes to exempt the import of bodies (including cabs) for the production of vehicles equipped with electric engines from paying excise duty.
In addition, for this period, the payer of the personal income tax may include the cost of purchasing an electric vehicle or retrofitting to it in the tax discount and individual buyers of electric cars are proposed to be exempted from paying a compulsory pension insurance tax.
The document provides for exemption from taxation of profits of enterprises that sell lithium of their own production, lithium-ion (lithium-polymer) batteries, battery chargers, as well as electric cars and electric buses of their own production the period until December 31, 2032.
In addition, the deputies propose that from January 1, 2021, a share of at least 5% of parking lots equipped with chargers for parking electric vehicles is foreseen.