The Cabinet of Ministers of Ukraine has refused to extend the tax benefits for the import of electric vehicles for another year – until January 2027. Previously, the Verkhovna Rada approved a corresponding initiative aimed at prolonging tax incentives for electric car importers. The main reason for the government’s refusal is the potential losses to the state budget, and an additional factor in this decision was the memorandum with the International Monetary Fund.
This is reported by Business • Media
Preferential regime for electric vehicles: history and current state
Since January 1, 2019, VAT and customs duties on the import of electric vehicles have been abolished in Ukraine, and the excise tax has been reduced to €1 per kilowatt-hour. Since July 2022, there has been no need to pay a fee to the Pension Fund when purchasing an electric vehicle. According to financial institutions, this year the tax benefits for the import of electric cars have cost the state budget 14.5 billion hryvnias.
Impact of the decision on the electric vehicle market in Ukraine
In September and October, electric vehicles accounted for about 33% of the new passenger car market in Ukraine. According to estimates by the National Bank, in 2025, the import of electric vehicles may exceed 2 billion dollars, significantly more than the 1.3 billion from last year. However, the cancellation of import benefits is expected to lead to a reduction in the volume of electric car imports. Significant stocks of vehicles have formed in the market, which will partially compensate for the decline in imports in 2025. This reduction will continue until the stocks are significantly depleted. After that, a gradual recovery of imports is anticipated, and by the end of 2026, figures may return to the levels of 2024.
“VAT benefits on the import of electric cars have cost the state budget ₴14.5 billion this year”.