The government has proposes to develop a comprehensive legal environment for vehicle disposal compensation. According to the main regulatory acts and the EU Convention on Human Rights, the Cabinet amended Article 7 of the Law of Ukraine "On the disposal of vehicles", the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine reports.

The bill is developed pursuant to the instructions of Prime Minister Mykola Azarov and President Viktor Yanukovych. The document envisions adding a new paragraph 5 to Article 7 of the Law of Ukraine "On the disposal of vehicles," whereby right and opportunity to receive appropriate compensation will become legally enforceable.

Experts note that according to the updates, the vehicle owner has the right to be reimbursed for the vehicle handed over for disposal. Also, the disposal compensation procedure is established by the Cabinet. Thus, the approval of the Law of Ukraine "On Amending Article 7 of the Law of Ukraine ‘On the disposal of vehicles’" will guarantee protection of rights and economic interests of the vehicle owners, who hand them over for disposal, in terms of  getting paid by the disposal facility for the vehicle being disposed.  

"This document proposes to formalize in legislation that the vehicle owner who hands it over for disposal has the right and the opportunity to receive an appropriate compensation in accordance with the procedure established by the Cabinet, " said Anatoly Maksyuta, First Deputy Minister of Economic Development and Trade of Ukraine.

Changes to the Tax Code came into force on Sept. 1. They introduce an environmental tax on disposal of decommissioned vehicles. The payment/ exemption certificate will be issued by the customs authorities at the time of importation of the vehicle on the territory of Ukraine. It will list the taxpayer name, the vehicle model, engine, chassis, body and frame number, customs declaration number and the paid amount of duty.


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