Cyprus tax plans play havoc with car sales

Figures on motor vehicle registrations show that the anticipation of car-tax changes had played havoc with car sales in the past few months.

Parliament is expected to approve cuts in excise duties on both new and used cars at the end of the month.

In anticipation of the cuts, people have stopped buying. Motor vehicle registrations fell again in September, by 6.9% year on year, after a fall of 3.9% in August.

Total registrations of motor vehicles during the first nine months of 2006 decreased by 0.1% to 38,043 from 38,084 vehicles in the same period of 2005.

Private saloon cars decreased by 4.5% to 27,343 from 28,618 in January – September 2005.

Of the total private saloon cars, 14,499 vehicles or 53.0% were new and 12,844 vehicles or 47.0% were used vehicles.

Commercial vehicles appear to have been unaffected, however.

Registrations of goods conveyance vehicles increased by 21.8% to 4,218 in 2006, compared to 3,462 in 2005.

Light goods vehicles increased by 15.0% to 3.120, from 2.712 in 2005.

Heavy goods vehicles increased by 46.4% to 1,098 in January- September 2006, from 750 in 2005.

Mechanised cycles increased by 4.7% to 3,883 in 2006, compared to 3,707 in

January-September 2005.