You are here

Reduced car tax, increased car duties

02/09/2003 23:31
A new bill, to be submitted to the House of Representatives in the next 2-3 weeks, seeks to ameliorate the social and ecological problems created by the really high taxes on the purchase of new cars and recommends a direct tax cut in cars. The submission of the relevant bill is not expected to raise reactions by the opposition parties, since DISY has already submitted publicly its own proposal on the issue. Despite the fact that the DISY MPs have requested a drop of 42% in the price of cars, Transport Minister, Kikis Kazamias has rejected this possibility.

Mr. Kazamias welcomed the submission of the “ten-point” proposal by the opposition and assured that the government will attempt to find a solution so that the Cypriot citizen is able to buy a cheaper and safer car.

Illusions…

Mr. Kazamias, however, emphasized that the car prices cannot be determined by the state but by the rules of market. “If we adopt DISY’s proposal to reduce car tax by 42%, then the state will lose CYP 20-30 million”, he noted.

Tax cut, but…

The Minister insinuated that a possible reduction in car tax would mean an increase in the registration and road duties. “We hadn’t taken a definite decision on the issue so far because we would like to have a spherical view not only for the consumption tax, but also the registration and road taxes”, he said.

Mr. Kazamias said that as from May 1, 2003, the government will allow the import of cars (of any age) provided that they will be in line with the EU requirements.

CYTA

Speaking after the meeting with the new Board of Directors of the Cyprus Telecommunication Authority (CYTA), Mr. Kazamias said that the government plans to submit before the end of the year a new bill concerning the new institutional framework of the Authority in line with the EU requirements.

CYTA General Manager, Nicos Timotheou explained that the recent increases in the call rates to mobile phones in Greece (18 cents per minute) were attributable to the increases in the call rates imposed by the Greek organizations and urged consumers to use fixed phones when call to Greece (5 cents per minute).

The Transport Minister said that the organization does not intend to give up its social role, while Board Chairman, Stavros Kremmos assured that CYTA is “ready to deal with free competition”.