Cyprus motorists have been paying higher road taxes by mistake but that’s about to change following a vote in the House on Thursday cutting rates starting after the middle of 2016.
Parliament passed an amendment unanimously in a move to correct previously jacked up rates on road tax, where two out of five categories had been calculating tax with the wrong factor.
In the category of pickup trucks, the road tax charge will drop by 30%. It is currently being factored by 10 cents per square centimetre but it will drop down to seven next summer.
Also, late payments were being assessed a fee of 10% on the whole amount, instead of the balance amount. Next summer, the 10% late fee will be calculated only on the late balance due.
Another change concerns older cars, registered prior to 24 November 2003, where vehicle onwers had to pay between €700 and €1000. Starting next summer, the maximum fee in this category will be €300.
License plate registration will also be possible now every three months instead of the mandatory six months or one year. This actually would not be a cost reduction for the tax payer, but it would give more options for people on a strict budget.
The final change concerns those who let their car registration remain expired for up to three years. Instead of having their vehicles scrapped from the database, now owners can make payments in twelve equal instalments and get their cars back on the road legally.
The revenue amount lost with this new law is estimated at €2 million compared to last year, but the amount will be made up to a degree by increased prices on license plate registration.
The new road tax rates are effective immediately, however it will take until summer 2016 until the software is updated. Until then, current road tax rates apply.