Business news from Ukraine

IN UKRAINE CABINET OF MINISTERS CAN RETURN REFUND OF VAT AND IMPORT DUTIES, INCLUDING FOR CARS

On Monday, the Cabinet of Ministers registered in the Verkhovna Rada draft law No. 7418 amending the Tax Code and other laws on the return of all customs duties and VAT on imported goods, including cars.

According to the draft law registered in Parliament on the revision of certain tax benefits, it is proposed to abolish the customs-free import of cars.

The document also proposes to resume taxation, which was abolished by law No. 2142, for goods imported by single tax payers of the first or third group, since on average the budget loses about UAH 3 billion in import duties on this benefit per month, as well as for enterprises that do not pay import duties – budget losses here average UAH 0.5 billion in import duties.

As for the abolition of preferential auto imports, the government notes that over 119,000 cars were imported during the period of this rule, and budget losses amount to UAH 13 billion, according to the explanatory note to the bill. At the same time, there are not isolated cases of importing premium cars.

At the same time, the bill proposes to exempt those who acquire ownership of electric vehicles from paying the fee for compulsory state insurance.

As noted in the explanatory note, the amount of customs benefits for registered imports of phones amounted to UAH 270 million, clothing and footwear – over UAH 850 million.

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EUROPEAN COMMISSION PROPOSES TO SUSPEND FOR YEAR ALL IMPORT DUTIES ON ALL UKRAINIAN EXPORTS TO EUROPE

Prime Minister Denys Shmyhal says the European Commission has proposed suspending all import duties on all Ukrainian exports to the European Union for a year.
“Today, the European Commission proposed to suspend for a year all import duties on all Ukrainian exports to the European Union. This is an unprecedented gesture of support for our country. The EU has never taken such massive trade liberalization measures in any country before. This opens up additional opportunities for our business, and our products become more competitive in the European market. We negotiated the abolition of duties with our European colleagues, and we are grateful that they heard us and supported Ukraine,” Shmyhal wrote on the Telegram channel.
Shmygal also said that the government has agreements and is negotiating with Poland, Romania, Lithuania, Germany and other countries to allow Ukrainian exports through the ports of these countries.
“We are working further so that, in addition to the EU countries and the UK, our other allies will also take the decision to abolish duties on Ukrainian products,” he wrote.

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