The House of Representatives has approved two laws scrapping consumer tax on vehicles and changing the road tax regime.
Both bills were approved by majority after protracted consultations between political parties and the government.
The new regime applies only to vehicles that will be registered after the law comes into effect on its publication in the Official Gazette and is part of efforts to curb emissions by penalising polluting vehicles.
Vehicles which have also been already imported but not yet registered will not be affected by the changes, the Cyprus News Agency said.
Under the new laws as amended by parties, the road tax on Euro 5a and Euro b diesel vehicles will be an extra €50 and zero for vehicles which run on petrol. Euro 5 cars are those manufactured between September 2009 and August 2014.
For Euro 4 vehicles the road tax will rise to €300 for €250 for petrol and from €500 to €600 for diesel. Such vehicles were manufactured between 2005 and 2009. The same will apply to older vehicles.
Euro 6c and Euro 6d vehicles, both diesel/hybrid and petrol/hybrid will also pay zero additional road tax as will Euro 6a και Euro 6b vehicles.
Euro 6 cars are up to five years old and Euro 6 a are those manufactured between September 2019 and August 2020.
House Transport Committee president Yiorgos Procopiou said after often heated debate in the committee, the new regime achieved convergence and would allow low income consumers to buy second hand vehicles that are five or six years old.
He said the government is now expected to bring to the House generous incentives to withdraw old vehicles so that Cyprus will no longer be a ‘graveyard for cars.’