CYPRUS: Cabinet approves environmentally-friendly road tax scheme

Cabinet has approved a new road tax scheme aimed at reducing CO2 and other emissions, an ever-growing source of concern as Cyprus is to be fined for failing its EU clean air targets.

The new system will be based on the “pay as you pollute” philosophy, with owners of cars with high emissions paying more to keep their vehicles on the road.

The system will be applicable for new and second-hand cars imported from overseas.

With the current road tax system, only carbon dioxide pollutants are taken into account, while with the new scheme, all pollutants emitted or generated from car exhausts, such as nitrogen oxides (NOx), microparticles (MP) and organic volatile substances (VOC) are to be taken into consideration.

The formula for the calculation of a car’s road tax will be take into account the pollutant levels plus the age of the vehicle and the size of the engine.

The owner will also pay a cap depending on the vehicle’s age when imported and registered in Cyprus.

Meanwhile, the cabinet has decided on a measure which will bring a smile on the faces of people looking to buy a new car.

The government has decided to do away with the consumer tax on new car purchases.

Until recently the consumer tax on new cars was considered to inhibit sales of new cars and push consumers towards buying older imported cars which have outdated systems when it comes to emission controls and safety.