Volodymyr Dubrovsky, CASE Ukraine`s senior economist, said in an interview to ‘Holos Stolitsy’ radio station that this step would result in less use of a private car.
This tax plays a stimulating role. It encourages the owner to use less car and prefer other modes of transportation that mostly do not pollute the environment.
Therefore, budget revenues will not be substantial. Even 4 billion is a very small figure against the state budget, which exceeds a trillion Hryvnia.
So, this tax does not have big fiscal functions. It is designed to encourage drivers to use fewer cars and less pollute the atmosphere or to choose less polluting fuels.