President Petro Poroshenko signed the law that foresees cutting the excise taxes on the cars with EU license plates. The bill also foresees more control over the movement and the use of cars with foreign registration. The respective statement appeared on the president's official Facebook page.
'I signed bills No.No. 8487,8488, which legalize the cars with European license plates, brought to Ukraine with the breach of the customs and tax legal framework. All funds, every last hryvna, will go to the Pension Fund, making up for its deficit, the indexation of retirement wages, the payments - above all, to those who get the minimum retirement wage. This is foreseen by the law - clearly and explicitly', Poroshenko wrote.
The president called passing the law 'a tough middle ground between the state and the actual car owners - between those who accepted the taxes as granted and those who only got the chance to become a decent taxpayer'. 'The Pension Fund will have to regularly report on the volumes of costs acquired from legalization of the cars,' Poroshenko marked.
The draft law No.8487 was meant to solve the problem of the vehicles with European car plates which were not custom-cleared. It provides 50 Euros of excise tax basic rates for automobiles with petroleum engines up to 3,000 cubic centimeters, and 100 Euros-rate for the cars with engine volume over 3,000 cubic centimeters; 75 Euros for the cars with diesel engine up to 3,500 cubic centimeters, and 150 Euros for those over 3,500 cubic centimeters.
Poroshenko asked the car owners to abstain from protest actions. 'There's no army without taxes; there are no roads without taxes; no education without taxes. It's the taxpayers who develop the state - not the presidents, neither the governments nor lawmakers,' he wrote.
The government's decision to cut the excise taxes outraged the owners of EU-imported cars in Ukraine; they gathered protest rallies and blocked the roadways in various regions of Ukraine.