Ukraine exempts electric vehicles from taxes


The government of Ukraine extended their electric vehicle incentive in form of the VAT exemption for imported electric cars. The Ukrainian parliament approved a bill to prolong the tax exemption for 2018 until the end of 2022.

Effectively the measure makes electric cars in Ukraine 17 – 20 percent cheaper. Initially the tax exemption was to expire at the end of this year but will now run another four years until 2022.

Bill No. 9260 won a comfortable majority with 236 votes over the required minimum of 226. During the same session, the Ukranian parliament also approved an increase of the CO2 emissions tax by Hr 0.41 so that it will equal Hr 10/ton – a meagre 0.31 euro but a beginning nonetheless. The plan includes a yearly Hr 5 increase until 2023.

For electric vehicles, the incentive has shown some effect. Siv Week reports that the market increased 2.3 times in 2017 YOY to 2,697 units. So far the trend continued throughout 2018 with 4,214 electric cars sold between January and October. Most of the EVs sold in Ukraine are pre-owned and their share of the electric car market amounted to 85%, according to media.,


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