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Prohibitive Excise Taxes: Why Ukrainian Carriers Can't Get Rid of Soviet ZILs

Високі акцизи: Чому українські перевізники не можуть позбутися радянських вантажівок

In the Ukrainian market of trucks, there is a confrontation going on in October between the internal resale market, dominated by Soviet-era vehicles, and the import of European models. Carriers are having trouble updating their fleets due to high excise tax rates. According to the Automobile Market Research Institute, 1,895 trucks were sold in the market last month, with over 74% going to internal resales.



In the internal resale segment, the most popular vehicles are Soviet models, aged between 25 to over 40 years. Among them, models such as ZIL-130, GAZ-3307-09, and Mercedes-Benz Sprinter can be highlighted. In contrast, the import segment is dominated by modern European brands, including popular models from Mercedes-Benz and MAN.



The current excise tax rules complicate the situation in the market, forcing carriers to operate outdated vehicles. It is no surprise that most trucks in the top 10 most popular models are of Ukrainian production rather than factory models. However, there is also a development of the market due to local superstructures on imported chassis and imported factory models.