Experts predict a collapse of the car market and an increase in the price of all types of fuel.
Already next month, Ukrainian motorists will feel the consequences of a number of tax innovations. The government plans to increase taxes and fees, which will affect the prices of cars and fuel.
The Center for Public Monitoring and Control writes about this.
What will happen to prices at gas stations
The first stage of increasing excise duties on various types of fuel is expected from September 1, in order to gradually bring them into line with European ones. In the future, excise duties will continue to grow for another four years.
According to NBU forecasts, after the increase in excise duties and by the end of the year, fuel prices will grow by more than 9%. At the same time, fuel market expert Serhiy Kuyun believes that motorists “will not even notice” the increase in excise duties.
“From September 1, the excise tax on gasoline will increase by UAH 1.5, and on diesel by less than UAH 2. A larger increase of about UAH 5 will be on liquefied gas. It is not a fact that we will see any increase in gasoline and diesel, since UAH 1.5-2 are such everyday market fluctuations that consumers usually do not even notice,” said Serhiy Kuyun.
The expert added that the decline in world oil prices observed since the end of July may generally compensate for the increase in excise tax. In addition, the increase in excise taxes will reduce the state budget deficit by about UAH 30 billion over the course of the year.
Another tax surprise for Ukrainians, a decision on which may be made before the end of August, is the introduction of an advance payment of the profit tax for gas stations, which will be calculated depending on the capacity of the fuel tanks. Experts believe that this will force some fuel sellers to go into the shadows, and those who continue to operate legally will reduce the number of tanks at gas stations by half and, probably, raise prices.
How the Ukrainian car market will change
The Cabinet of Ministers approved a package of amendments to the Tax Code. In particular, it provides for the introduction of a military tax in the amount of 15% of the price of a vehicle that is registered in Ukraine for the first time.
According to Finance Minister Serhiy Marchenko, this decision is justified, since the state has one urgent need – to provide for the army. And in such a situation, buying a car can wait. And if not – pay taxes on defense.
This innovation has caused criticism and concern among car dealers. In their opinion, an additional 15% of taxes can collapse the market for new cars, which will lead to the opposite effect to what was expected – deductions to the state budget will not only not increase, but will most likely decrease.
According to experts, the introduction of a military tax on the first registration of a car will increase the costs of buyers of middle-class cars by 150-250 thousand hryvnia.
According to car dealers, sales of new cars may decrease three times or more, and the number of used car registrations will decrease by at least a third.
Recall that Korogodsky explained that raising taxes will not save the Ukrainian economy. Only Western money can do this.