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Electric transport Development in Ukraine

03.06.2020

Development of electric transport industry in Ukraine. The Federation of Employers of Ukraine (FEU) calls to support the production of Ukrainian trams, trolleybuses and to stimulate not the import of finished electric cars, but their production.

 

Of course, the Federation supports the ideas of ​​stimulating the development of the electric transport industry in Ukraine, as such, which will increase production in the country and help to increase the number of jobs.

 

However, for unknown reasons, the authors of draft laws № 3476 and № 3477 on stimulating the development of  the electric transport industry in Ukraine ignored the production of such important types of electric transport as trams and trolleybuses.

 

The FEU addressed this issue to the Chairman of  the Verkhovna Rada Committee on Finance, Tax and Customs Policy Danylo Hetmantsev.

 

Today, the tram and trolleybus industry is in a difficult situation due to the import of a similar foreign-made transport to Ukraine at prices that can be considered dumped.

 

Foreign producers often enjoy the conditions of free economic zones and technology parks in their countries, support from export and credit agencies or simply receive subsidies from the state, the appeal said. As an example, today a trolleybus, electric bus or tram made in Belarus can be leased in Ukraine under special programs at interest rates of 0.1% per annum. At the same time, a similar transport made in Ukraine will cost the buyer 13.04% per annum.

 

We believe that to increase the competitiveness of Ukrainian electric transport, it is necessary to extend the rules on benefits of value added tax and income tax and temporary benefits on customs duties when importing into Ukraine components and  complete sets for own  production of electric vehicles and manufacturers of trolleybuses and trams.

Another problem for the development of the electric transport industry in Ukraine is the fact that currently state support, for some reason, is to stimulate the import of finished electric vehicles, rather than their production. 

When importing into Ukraine a finished car with an electric motor:

• zero rate of import duty is levied (from January 1, 2016);

• from the beginning of  2018 to December 31, 2022, transactions for the importation into the customs territory of Ukraine and the supply in the customs territory of Ukraine of vehicles equipped exclusively with electric motors (one or more) specified in the product subcategory 8703 90 10 10 according to UKT FEA (including those produced in Ukraine) are exempted from value added tax;

• the rate of excise tax for vehicles specified in commodity position 8703 90 10 10 according to UKT FEA, equipped exclusively with electric motors (one or more), is set at 1 euro per 1 kilowatt-hour of electric battery capacity of such vehicles.

 

These benefits apply to both new electric vehicles and those that were in use. The latter usually have a shorter life cycle on the territory of Ukraine, and the cost of their disposal becomes a problem of our state.

 

Given the above information, the FEU offers:

 

- urgently cancel any benefits for the import of used electric vehicles;

 - to limit the term of collection of the zero rate of import duty and other types of benefits for the import of finished electric vehicles into the customs territory of Ukraine on December 31, 2021.

 

Therefore, they called  the profile committee to support the bills №3476 and №3477, taking into account the proposals of the FEU.

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