Cyprus motor vehicle registrations show tax effect

Data on motor vehicle registrations for the whole of 2005 show the impact of the tax cuts in late 2003 rather than the state of consumer demand.

For the whole of 2005, total motor vehicle registrations dropped by 9.9%. However, in the previous year, they rose by 33.9%, as buyers took advantage of massive cuts in excise duties implemented late 2003.

These cuts pushed the prices of some saloon cars down by 20%.

The drop in sales began from the second quarter and was still evident in the fourth, when total registrations dropped by 15.3% year on year.