Which Car Owners Will Be Affected by the New Luxury Tax

The order of charging the transport tax, or the so-called luxury tax, has been changed in Ukraine. The innovations are prescribed in law No. 5600, adopted by the Verkhovna Rada on November 30 and will come into force from 2023.

Deputies decided to lower the threshold for collecting the tax. Owners of cars up to 5 years old and worth from 200 minimum salaries will have to pay the luxury tax in Ukraine. As of now (with a minimum wage of 6500 UAH), this is 1.3 million hryvnias.

For reference, in 2022, car owners in Ukraine had to pay the transport tax for cars worth from 375 minimum salaries or 2,437,500 hryvnias. Last year, only 172 such cars were counted, and apparently, this seemed insufficient to someone in power.

For reference: 1.3 million hryvnias is the price of a Volkswagen Tiguan in not the coolest configuration. Also, for this money, you can buy a Hyundai Santa Fe or a Honda CR-V in top configuration, which are not exactly luxury cars.  

Leave a Reply