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The environmental friendliness of the car will directly affect the amount of road tax in Cyprus

The environmental friendliness of the car will directly affect the amount of road tax in Cyprus

August 23 2018
Tags: Cyprus, Transport, Taxes, Ecology, Economics, Laws

The Transport Department has prepared a new draft law on road tax, which will be submitted to the Ministry and Parliament for discussion. This is reported by the news portal In-Cyprus with reference to the publication on the website of the department 22 August.

The new road tax system does not cover already registered vehicles and concerns new or second-hand cars that will be registered after the adoption of the law.

The proposal provides for the abolition of a number of conditions that facilitated the registration of imported used cars. In general, the older the car and the more its engine power, the higher the road tax. On the contrary, owners of "clean" cars will pay less.

The changes relate to vehicles belonging to the categories M1 and N1, i.e. with a capacity of up to eight passengers, and trucks weighing up to 3,5 tons.

The road tax for larger categories of vehicles will be calculated on the basis of levels of pollutants in emissions, engine category and age of the machine. Thus, the owner will be obliged to pay an additional tax along with the annual road charge, the size of which will be from zero to 400 euro, based on the engine category (Euro-3, Euro-4, Euro-5 or Euro-6).

The bill was put forward for discussion in connection with a new method for calculating the level of pollutants, which is mandatory for EU states. With the help of the new law, the government seeks to preserve existing annual revenues from taxes and fees from vehicles, and to reduce emissions of pollutants to avoid EU fines.

The Department of Transport, Customs, Labor Inspectorate, and the Ministry of Finance, as well as the Association of Vehicle Importers, participated in the preparation of the text of the proposals.

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