Consideration of a class action lawsuit to the Kiev county administrative court on recognition of the tax on expensive autos unlawful will happen today
As you all know, Verkhovna Rada of Ukraine made changes in the Tax Code which introduced the tax on the automobiles which were in use for less than 5 years and have the motor volume of more than 3000 cubic cm – for gasoline motors; 2500 cubic cm – for diesel-powered aggregates to the value of about UAH 25 000. The tax on expensive autos was brought into force by decision of the Kiev City Council (KCС).
In the opinion of the lawyers of Law Company Colares (ЮК «Коларес») acting in the interests of the car owners of Kiev, an obligation of charging of the transport tax is unlawful, whereas:
This tax violates the rights of the car owners, on the basis of the present discrimination of the car owners’ rights, as a human being, comparing to other people, on a characteristic of the property regulations.
Discrimination in this tax also appears in the less advantageous terms of payment of the transport tax comparing with other tax-payers.
Establishing of the transport tax on the automobiles which are in somebody’s property is a violation of the moral norms and of the law, and violates the regulation consolidated in Article 58 of the Constitution of Ukraine about the actions the laws and other regulatory-judicial acts.
Herewith, Verkhovna Rada of Ukraine may establish only the list of the permitted local taxes and the boundary parameters of such taxes. And, as such, approval of the local taxes, with observation of the criteria established by Verkhovna Rada, is already competence of the corresponding local councils. And, vice versa, if considering that the transport tax, in fact, is adopted and determined by Verkhovna Rada, is of a national-level, then, according to Article 8.2. of the Tax Code of Ukraine, to the national-level ones belong the taxes and dues established by the Tax Code of Ukraine and are compulsive to payment in the whole territory of Ukraine. However, in the list of the national-level taxes determined by Article 9 of the Tax Code of Ukraine such kind of tax is absent.
Taxation is introduced contrary to the stability principle stipulated by Items 4.1.9 of Article 4 of the Tax Code of Ukraine which claims that changes in any tax elements and dues may not be made later than six months before beginning of the new budgetary period in which the new rules and charges will be in force. The taxes and dues, their charges, as well as tax benefits cannot be changed during the budgetary year.
The transport tax narrows the possibility of the car owners to use their transport means properly, whereas, the rate of the transport tax significantly exceeds the size of a monthly minimum of subsistence for the person capable of working and the living minimum wage.
Considering the abovementioned, the lawyers of Law Company Colares (ЮК «Коларес») made a conclusion that application of the transport tax contradicts the established constitutional norms in force, guarantees and principles violating which and taking of the decision indicated above, KCС detaches the owners of separate automobiles among other people who also use their own automobiles, thus, limiting their rights and neglecting the provisions of the law about action of the regulatory-judicial act with time and the principle of non-discrimination.