Will the benefits for the import of electric vehicles be extended until 2027?

Draft law No. 13351 has been registered in Ukraine, which proposes to extend the VAT exemption on the import of electric vehicles until January 1, 2027. This may affect more than 160,000 owners of electric cars, which make up almost 1.5% of the country's entire car fleet.

Bill No. 13351 provides for amendments to subparagraph 64 of Section XX “Transitional Provisions” of the Tax Code of Ukraine regarding the extension of the preferential taxation regime for the import of vehicles equipped exclusively with electric engines. This document was registered by a group of 10 people's deputies led by Dmytro Razumkov.

The position of the authorities: Despite the registration of the bill, the head of the Verkhovna Rada's tax committee, Danylo Hetmantsev, previously stated that the benefits for electric vehicles will only be valid until the end of 2025, and there are no plans to extend them. This creates uncertainty for businesses and consumers.

Prospects: The bill must pass through the Verkhovna Rada committees and, if included on the agenda, a vote in the session hall. Until then, businesses cannot accurately forecast import volumes, buyers cannot plan costs, and infrastructure projects cannot accurately predict the pace of development.

Extending the benefits for the import of electric vehicles until 2027 could contribute to the development of the electric transport market in Ukraine. However, the final decision depends on political will and the economic situation in the country.