The bill was passed with 41 MPs for and five against, while two MPs abstained.
MPs from all parties said the goal of the legislation is to promote the sale of cars that are environmentally friendly and for Cyprus to not be a graveyard of car pollution.
Parliament also passed a zero excise tax on vehicles. Based on the bill, cars that are powered by diesel, that are in Euro 5a and Euro 5b categories will be charged €50, while petrol vehicles of the same type will not pay an excise tax.
Euro5 cars are vehicles that were created from September 2009 to August 2014.
Cars that are classified Euro 4, created from 2005 to 2009, will be charged €300 if they are powered by petrol, while diesel cars will be charged €600.
Vehicles older than these will also be charged the same the parliament decided.
Euro6 vehicles, both petrol and diesel, will not be charged an excise tax. These cars were created from 2014 to 2018.