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Tax cut in cars not to exceed 15%

18/09/2003 07:33
Technocrats of the Transport and Finance Ministries who elaborate the proposals on the consumer tax cut for new cars will submit their final recommendations on Thursday afternoon.

According to StockWatch sources, the technocratic study will be initially set before the Transport and Finance Ministers and then before the Council of Ministers. Transport Minister, Kikis Kazamias told StockWatch on Wednesday that the government has decided to put an end to the issue before the end of the month.

“The Cypriot citizen will be informed on the Council’s decision immediately. It is noted, however, that the government does not intend to adopt the proposals of the opposition party DISY, but it will proceed to its own evaluations. Its decisions will affect neither the state interests nor the consumers’ interest”, Mr. Kazamias said.

Safe sources revealed that the drop in the consumer tax rate of the new cars will probably be combined with the increase in duties. The tax cut is not expected to exceed 15% and will include the car “extras” which today are subject to special taxation. The joint proposal of the Finance and Transport will be submitted before the Council of Ministers next week.