News Local Consensus on new road tax regime

Consensus on new road tax regime

The House Transport Committee on Thursday agreed a new road tax regime based on emission standards which will go to the plenary of the House of Representatives on March 1.

The proposal is part of efforts aiming to encourage vehicles with lower emissions and prevent Cyprus from turning into what some have described as a ‘graveyard’ for antiquated, polluting cars.

The new regime will apply only to vehicles that will be registered after approval of the new law, and not those that have already been registered.

The first bill generated a storm of protests as it was seen as favouring new vehicles.  After protracted consultations MPs and the government have come up with a revised scheme that focuses on emissions as follows:

  • Cars with CO2 emissions lower that 120 gr per km €0.50 per gr
  • Cars with CO2 emissions between 120 gr and 150 gr per km €3 per gr
  • Cars with CO2 emissions between 150 gr and 180 gr per km €5 per gr
  • Cars with CO2 emissions above 180 gr €10 per gr

Road tax will also depend on the Euro emission standards as follows:

  • Cars with Euro 6 technology (that is manufactured after September 2014)  no surcharge but diesel vehicles which are 6c and 6d technology will pay an extra €100
  • Cars with Euro 5  technology (September 2009 to August 2014) €100 for petrol and €250 for diesel.
  • Older technology cars €300 for petrol and €600 for diesel

Committee chairman Yiorgos Procopiou said the committee was asking the government to draw up an incentive scheme for the withdrawal of old vehicles.

Akel MP Andreas Fakontis said that although the consensus agreement provided for lower hikes than those initially proposed by the government, there will be a significant increase for diesel cars of between one and four years.

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