The Ukrainian government will soon consider a bill that provides for additional payments to Ukrainian citizens purchasing automobiles manufactured in the country, the Interfax Ukraine news agency has reported.
According to the report, Deputy Prime Minister Yurii Boiko announced this on the Channel 5 television station. "We are preparing a bill: we will make additional payment so that [people can] buy domestic [automobiles]. We will send it to the government and the parliament in the near future,” said the deputy prime minister.
Boiko stressed that the government will continue to support the Ukrainian automobile manufacturing industry because of the industry’s "historical past," the 70,000 jobs in it, and the fact that automobile imports into the country exceed all critical indicators. "We will support those employers that preserve these jobs," he said.
Commenting on the criticism of the law on environmental taxes, the deputy prime minister pointed out that such a tax or duty exists is in practically all countries.
Boiko said that there will be a positive dynamic in the industry if the full range of measures to support the automobile manufacturing industry are implemented, particularly the Cabinet of Ministers resolution on granting benefits to companies with the full technological cycle.
As reported, Ukraine introduced special import duties of 6.46% on passenger cars with engine capacities of 1,000-1,500 cubic centimeters and 12.95% on those with engine capacities of 1,500-2,200 cubic centimeters on April 14, regardless of the country of origin and export. This prompted dissatisfaction in many countries. Turkey introduced retaliatory sanctions against Ukraine on July 12 while Russia has announced its intention to limit the import of Ukrainian chocolate, float glass, and coal.
In addition, the parliament adopted on July 4 a law on recycling of vehicles that are no longer in
use and introduction of environmental tax on recycling of such vehicles. Ukrainian automobile manufacturers are exempted from this law if they undertake to recycle their automobiles and invest funds in establishment of recycling centers.