Cancellation of 13% Import Tax in Ukraine

When the financial crisis hit Ukraine, however, the Parliament promptly introduced additional duty on imported goods in the amount of 13%. On February 20, 2009, President Yuschenko approved this temporary surcharge of 13% by signing the law "On Amending Certain Laws of Ukraine with the Aim of Improving the Balance of Payments in Connection with the Global Financial Crisis."
Suddenly, on 18 March, 2009, the Ukrainian government came to its senses and reversed its prior decision by cancelling the 13% import duty for all products (except refrigerators and automobiles). Apparently the Ministry of Economy is also working on a draft law to totally cancel the extra import duty imposed by the Law No. 923. Thus, if the Parliament approves this bill, the13% duty import will be cancelled for the cars and refrigerators in the near future.
In conclusion, it appears that Ukrainian leaders finally recognized (belatedly) that imposition of a 13% import duty contradicts the requirements of World Trade Organization, and actually took measures to adjust their laws accordingly. And that is a sign of progress.
ABOUT THE AUTHOR: By Tatiana Dzyadok, Esq.
Tatyana Dzyadok is an associate with the Kiev-based law firm of Frishberg & Partners.
Born Svetlovodsk, Ukraine; admitted, 2003, Ukraine. Education: Kirovohrad State Pedagogical University (Foreign Languages Department, 1997); Kiev State University (Institute of International Relations, International Law Department, 2003).
Co-Author: Doing Business in Ukraine, Russian Edition 2007.
Languages: Russian, Ukranian and English.
Practice Areas: Corporate Law, Labor Law, Company Registration