Do­mes­tic car mak­ers los­ing out to im­ports, used cars

Kyiv Post Legal Quarterly - - Contents - BY OLENA SAVCHUK SAVCHUK@KYIVPOST.COM

When it comes to au­to­mo­biles, there is no un­der­stand­ing be­tween the Ukrainian con­sumers, do­mes­tic car­makers and the gov­ern­ment.

Like many na­tions, Ukraine tries to pro­tect its na­tional pro­duc­ers with im­port du­ties and value added taxes, which boost gov­ern­ment rev­enues. Al­to­gether, the taxes add 47 per­cent to a new car's value and 170 per­cent to a used one, mak­ing au­to­mo­biles more ex­pen­sive than in neigh­bor­ing Euro­pean coun­tries.

Do­mes­tic man­u­fac­tured ZAZ Lanos (front) is cheaper than im­ports. But de­spite the eco­nomic cri­sis and a drop in pur­chas­ing power, the man­u­fac­turer ac­counted for just 6.1 per­cent of 2015 sales. (Kostyan­tyn Ch­er­nichkin)

Newspapers in English

Newspapers from Ukraine

© PressReader. All rights reserved.