In 2025, a new "luxury tax" will be introduced in Ukraine, which will affect owners of cars worth more than three million hryvnias, if their age does not exceed five years. This measure is aimed at increasing revenues to the state budget, as well as creating a fairer tax burden for citizens with a high level of income.
The tax will amount to 25,000 hryvnias per year. If the vehicle reaches five years of age during the calendar year, the owner will be required to pay tax only for the months when the vehicle was still subject to this law. This means that if the car is five years old and the tax has been paid for the entire year, the owner will not be required to pay extra for the remaining months. At the same time, car owners who have not reached this age will have to pay tax for the whole year.
The official list of car models subject to the "luxury tax" will be published by the Ministry of Economy of Ukraine after February 1, 2025. In advance, you can expect that the list will include premium cars such as Audi, BMW, Mercedes-Benz, Porsche and other brands that meet the specified criteria. The owners of such cars will receive a notice from the tax office and they will have 60 days to pay the tax. These messages will be sent until July 1, 2025. Owners who do not pay the tax on time risk fines.
According to the initiative, this tax is aimed at replenishing the state budget and ensuring a fairer distribution of the tax burden among citizens. It applies to owners of expensive cars who can afford such purchases, given their income level. Thus, the state wants those who have more financial resources to contribute more to the financing of public needs.
