21 Jun 2022 15:58

Ukrainian parliament reinstates import duties, VAT starting July 1

MOSCOW. June 21 (Interfax) - The Ukrainian Verkhovna Rada has reinstated duties and VAT on imported goods, including cars, starting July 1, Yaroslav Zheleznyak, deputy head of the Ukrainian Verkhovna Rada Finance, Tax, and Customs Policy Committee, said.

Ukrainian media reported with reference to Zheleznyak's Telegram channel that the parliamentarians passed government bill No. 7418 by 234 votes, while the minimum number of votes required for the document to pass was 226.

The relevant parliamentary committee had recommended earlier that the Rada support government bill No. 7418, even though parliamentarians had had three alternative versions of the bill registered as well.

Government bill amends the Tax Code and some other regulations on refunding all customs duties and VAT on imported goods, including cars. It also proposes reinstating taxation of goods imported by grade 1 to 3 unified tax payers, which was earlier repealed under Law No. 2142, arguing that the budget is losing monthly about 3 billion hryvni in import duties because of this exemption.

As reported earlier, the Verkhovna Rada exempted goods imported to Ukraine from import duties and VAT for grade 1 to 3 unified tax payers who pay a 2% sales tax and simplified the customs clearance procedures themselves starting April 6. The Rada also fully exempted imports of vehicles by individuals and entities operating under the simplified taxation system.

Danylo Hetmantsev, head of the Finance, Tax, and Customs Policy Committee, assumed that currency control will be relaxed immediately after repealing the import duties and tax exemptions.

"It is important that, immediately upon this decision, currency control will be relaxed, including the lifting of restrictions on settlements for imports of non-critical goods," Hetmantsev wrote on Telegram on Tuesday in commenting on the legislation repealing import exemptions passed by the Rada.