Amid plans by the Cabinet of Ministers of Ukraine to introduce a 15% tax, all cars in dealerships were sold out in two days

After the Cabinet of Ministers of Ukraine introduced a bill to impose a new tax of 15% on the cost of purchasing a car abroad, Ukrainians bought up all the cars displayed in showrooms within a few days.

This information was reported by Oleg Nazarenko, the general director of the All-Ukrainian Association of Automobile Importers and Dealers (VAAID).

According to Nazarenko, buyers cleared out all the cars from the dealerships on Friday and the first half of Saturday, leaving showrooms empty.

Buyers are rushing to purchase available cars to avoid paying the additional 15% new tax. However, this effect is expected to be short-lived, as sales will likely stall afterward, resulting in a decrease in revenue instead of an increase for the government, according to the All-Ukrainian Association of Automobile Importers and Dealers. Moreover, the current 5% contributions to the Pension Fund, which buyers are now paying, could also be in jeopardy, as the total 20% burden on car purchases will be a significant amount for buyers to get accustomed to over a long period.

For now, bill No. 11416 is just a proposal from the government to increase budget revenues. However, experts believe that if passed, the law could come into effect very quickly.

To recap, on Thursday, the government introduced bill No. 11416 to the Verkhovna Rada, which provides for the introduction of a 15% military levy on the purchase (initial registration) of cars, along with other additional taxes.