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Changes on road taxes causing turmoil

July 15, 2018 at 10:00am
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Transport accounts for almost a quarter of Europe’s greenhouse gas emissions and is the main cause of air pollution in cities. The transport sector has not seen the same gradual decline in emissions as other sectors: emissions only started to decrease in 2007 and still remain higher than in 1990.

Changes are on the way as regards road tax in September for all EU member states – including Cyprus –  following the adoption of a new way to calculate emissions.

More specifically, the new bill raises current emission charges by 15-30%, which means a change in the classification of each type of vehicle as regards road tax. In light of the above, vehicle owners who current pay €100 in road tax, will — if the new legislation is approved — have to pay €120-€140.

The Road Transport Department, the Ministry of Finance, the Rural Development and Environment Department of the Ministry of Agriculture, as well as car importers’ associations, launched a wide-ranging consultation process with a view to reform the legislation regarding road taxes. The aim is that changes would not affect owners in a significant way or benefit specific vehicle models.