Decree on vehicle recycling tax on Russian cars enters into force

The Uriadovy Kuryer governmental newspaper of September 14 published the Cabinet’s decree № 843 dated September 3, which introduces vehicle recycling tax on cars and buses imported from Russia.

According to the decree, legal and physical entities, who import vehicles and bodies to them from Russia, shall independently ensure its further utilization after the vehicles’ loss of their consumer qualities.

As well, the document sets the boundary recycling services prices for unserviceable vehicles and vehicle bodies for them. Thus, recycling price for new cars with an engine capacity of 1.000-2.000 cubic centimeters is 7.37 thousand UAH, with capacity of 2.000–3.000 cubic centimeters - 14.08 thousand UAH, with capacity of 3.000-3.500 cubic centimeters - 19.09 thousand UAH, with capacity over 3.500 cubic centimeters- 30.25 thousand UAH.

In addition, the recycling price for cars older than three years increases in 6.2-6.4 times, and for cars with engine capacity of 3.000-3.500 cubic centimeters – in 8.2 times.

At the same time it is indicated that the recycling price for cars, which are imported by physical entities for personal use, regardless of the size of the engine, is 550 UAH for new cars and 825 UAH for cars older than three years.

Boundary recycling price for vehicles to carry more than 10 people, cargo, and special purpose vehicles with full weight up to 2 tons is 19 thousand UAH, with weight of 2.5 to 3 tons – 30.4 thousand UAH, with weight of 3.5 - 5 tons - 38 thousand UAH, with weight of 5 - 8 tons – 41.8 thousand UAH, with weight of 8 - 12 tons - 50.92 thousand UAH, with weight of 12 - 20 tons – 55.86 thousand UAH , with weight over 20 tons - 110.2 thousand UAH.

In the case of recycling of this category vehicles over 3 years, its value will increase in 1.56-1.6 times for vehicle with weight of 2.5 - 5 tons, in 4-6.8 times for vehicle with weight of 5 - 20 tons, and in 4 times for vehicle with weight of more than 20 tons.