Ukraine may soon introduce a military tax on cars, which will increase their cost. Find out more about how much cars will become more expensive and what you need to know about the draft law

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Recently, it became known that an additional military tax may be introduced on cars. This is evidenced by the draft law No. 11416 registered in the Verkhovna Rada. What Ukrainians should expect and how the innovation will affect the country’s car market is discussed further in the article.

Car price rise in Ukraine due to military duty: details

The draft law provides for the imposition of a 15% additional fee on new and used cars that are registered in Ukraine for the first time. It is noted that citizens with disabilities will be exempt from paying this tax.

Ukrainians have already reacted to this news: car dealerships in the country are experiencing an influx of buyers.

Experts note that the introduction of this tax may be unaffordable for Ukrainians, as the total tax on car purchases may reach 20% in combination with the existing Pension Fund tax.

As of today, the import of vehicles to Ukraine is already complicated due to the war, with additional duties, taxes, fees, etc. In June 2024, for the first time in a year, Ukraine recorded a drop in demand for new car purchases.

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This innovation may significantly worsen the dynamics and reduce the demand for new and used cars in the country, as well as lead to the implementation of various corruption schemes.

The introduction of this law is planned due to the need to cover the country’s defence needs and finance the armed forces.

Currently, the law is in the process of being reviewed by the Verkhovna Rada, so there is no final decision, amendments or comments on it yet.

Every driver in Ukraine should remember that for both used and new cars, regardless of their value, obtaining motor third party liability insurance is mandatory.

Motor third party liability insurance (MTPL) is a compulsory vehicle insurance in Ukraine that guarantees compensation for damages in the event of an accident. On the Visit Ukraine portal, you can buy a CTP insurance policy from a licensed insurer for reliable protection on Ukrainian roads. Packages with a deductible of UAH 3200, UAH 1600 and UAH 0 are available.

Just a reminder. Importing foreign cars from abroad is quite popular among Ukrainians. What documents are required to register a foreign car in Ukraine, how much it costs and where to go – read here.

Photo: Freepik

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