Up to 40% increase in price: how the abolition of benefits will affect electric cars
22 July 2025 12:58
Starting in 2026, electric cars in Ukraine may become significantly more expensive – by 20-40%, if the Verkhovna Rada does not extend the tax incentives that have been in effect since 2018. This is reported by "Komersant Ukrainian" with reference to LIGA.net.
Two bills have been registered in the Parliament to save Ukrainians from a sharp jump in prices:
- no. 13351 provides for the extension of benefits until January 1, 2027. It was submitted by MPs from the Servant of the People and Smart Policy factions.
- no. 13351-1, an alternative document submitted by MPs from the Servant of the People and Nash Krai factions, proposes to maintain the benefits until the end of martial law and for another year afterwards.
Currently, imports of electric cars to Ukraine are exempt from VAT, import duties and pension fees. The only mandatory payment is an excise tax of EUR 1 per 1 kWh of battery.
Thanks to this incentive, Ukrainians have imported $3.3 billion worth of electric vehicles since 2018, but the budget has lost UAH 48 billion in taxes.
The market reacts instantly: imports and prices rise
In response to the possible abolition of the benefits, Ukrainian importers and buyers have begun to actively buy electric vehicles from China, the US, and the EU. In the first half of 2025 alone, 5,598 new electric cars were added to the country’s fleet, and the total number of registered electric vehicles in Ukraine exceeded 171,000 units.
Cars with delivery within 2-3 months are sold out even before arrival, and some dealers have already raised prices due to growing demand.
External factors also add to the risk of the abolition of Ukrainian tax benefits:
- On September 30, 2025, the United States will stop providing subsidies for environmentally friendly cars.
- The EU is also discussing reducing government support for electric cars.
- Currency fluctuations and supply chain instability only increase uncertainty for buyers and businesses.
What will happen next
Everything depends on the decisions of the Verkhovna Rada. If the benefits are not extended, prices will rise and the electric car market will lose momentum. If the parliament supports one of the bills, Ukrainians will retain access to environmentally friendly vehicles at an affordable price for at least another year.
