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Tax cut in cars enters final stage

04/09/2003 12:26
The political decision for a tax cut in cars is already a fact. It seems, however, that the rapprochement and philosophy of the Transport Ministry is not completely in line with that of the Finance Ministry.

StockWatch sources reveal that the Road Transport Department has prepared a complete study, which focuses on the renewal of the Cypriot cars, the withdrawal of the older models, the incentives given to their owners and the positive impacts from the protection of environment.

The study of the Road Transport Department is currently examined by the Transport Minister and will be submitted before the Finance Ministry’s technocrats on Friday. It is noted that the Finance Ministry has also prepared a relevant study on the issue, which will be evaluated as well at the meeting to take place on Friday, with the participation of the Transport Minister, Kikis Kazamias and the Finance Minister, Marcos Kyprianou.

According to StockWatch sources, the Ministry will consider the revised tax in cars in relation not only to the reduction of the consumption tax but also to the revision of the registration, road and descent duties. The government’s policy provides for the reduction in car taxes, but not to the extent DISY proposed recently (42%).