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During 2013, the State budget revenues grew by almost 440 million UAH from environmental taxes for the disposal of vehicles. According to statistics from the Ministry of Revenue and Duties of Ukraine, a significant proportion of revenues, namely 430 million UAH, came from the recycling tax on second hand cars imported to Ukraine. Another 5 million UAH came from environmental taxes paid on sales of domestically produced vehicles, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The Law of Ukraine "On Amending Tax Code of Ukraine on paying environmental tax for disposal of decommissioned vehicles" came into force on Sept. 1, 2013. The update was reportedly caused by the need for timely disposal of decommissioned vehicles.
Experts say a significant amount of funds received by the state budget in almost four months alone, proves that Ukrainians are ready to buy new cars, so dealers do not wind up car sales.
According to experts, from September to November 2013, Ukraine imported 48,000 cars. That is, the recycling tax has not reduced the imports of new cars. According to analysts, in 2014 environmental tax payment to the state budget will bring over 1.5 billion UAH which come mainly from sales of imported cars. Also, experts believe that the imports of cars will not fall, and last year's figures demonstrate that.