OREANDA-NEWS. On February 02, 2009 The Government proposed to amend the Law of Ukraine “On Tax on Owners of Transport Means and Other Self-Propelled Machines and Mechanisms”.  This was disclosed by Prime Minister of Ukraine Yulia Tymoshenko at a meeting on the issues of determining the amount of transportation fees.

Yulia Tymoshenko noted that earlier approved Government’s decision on increasing the tax on owners of transport means had to concern only the owners of expensive, prestigious cars, which are “subject of luxury”.

But, according to the Prime Minister, after completing the bill in profile committees of the Parliament, the people’s deputies have introduced amendments and additions, making this law such, which limits the middle class rights. “I believe, this passed law is absolutely useless and it strikes against those people who are hard hit by the crisis as well,” the Head of Government stressed. Yulia Tymoshenko told, in this connection the Government suggests correcting errors which had been allowed during voting in the Verkhovna Rada.

Yulia Tymoshenko said that Government intends to make a request to the Parliament to consider amendments and additions to the relevant Law this week. At that, she informed that experts of the State Committee of Ukraine for Regulatory Policy and Entrepreneurship, Council of Entrepreneurs under the Cabinet of Ministers had worked at amending the Law “On Tax on Owners of Transport Means and Other Self-Propelled Machines and Mechanisms” and these amendments aimed at essential reduction of the tax on owners of transport means.

So, according to these amendments, the Government suggests reducing the tax rate while conducting registration, re-registration and regular maintenance inspection: from 75 to 20 hryvnias per 100 cubic cm for vehicles with engine volume from 2201 to 2500 cubic cm; from 75 to 50 hryvnias for vehicles with engine volume from 2501 to 3000 cubic cm and from 120 to 80 hryvnias for vehicles with engine volume above 3000 cubic cm.

Besides, if the Parliament passes this bill, the owners of cars used more than 8 years with engine volume above 2.5 thousand cubic cm will pay only 70% of fixed tax rate.