1996 Ukraine Budget Law Amends Tax Rates

The 1996 budget law passed by the Parliament 22 March 1996 and in force as of 1 January 1996 amends the rates of land tax and motor vehicles tax. Effective 6 April 1996 the land tax rate is increased by 1.45 times while the motor vehicle tax rate is increased by 1.5 times. Specific rates of land tax are set by regional authorities and the motor vehicle tax rates vary by engine capacity. As regards import VAT and excise duty, starting 1 July 1996 these taxes will be collected by the customs at 20% of the fair market value of the goods. In the meantime the Cabinet of Ministers is to come up with the exact scheme of tax collection. The law also incorporates into the national budget the finances of the Pension, Innovation and Labour Protection funds. This signifies stricter control and enforcement of the relevant payments by tax payers. (The Law on the 1996 National Budget of Ukraine of 22 March 1996)