Amendments made by cabinet to the law on motor vehicles, which will see the introduction of an emission-based road tax, were slammed on Tuesday as unfair and unconstitutional by the Cyprus Car Importers Association (Pasea).
The amendments do not promote environmental protection, nor do they promote anti-pollution policies, Pasea said. Rather, the additional charges will only disproportionately affect the average low-income consumer who cannot afford a new car, as well as importers of older used cars.
Sole beneficiaries of the amendments, Pasea added, are importers of new cars and high-income buyers able to purchase new luxury cars with low CO2 emissions, shutting the average consumer out of the automobile market as a result.
Pasea president Mattheos Ioannou said the law amendments threaten to render the most popular vehicle category, those with 1416 horsepower engines, out of bounds for the average Cypriot consumer, with road taxes skyrocketing from €80-90 to €300-600.
On December 5, cabinet approved amendments to the law on motor vehicles, which abolish consumption taxes across the board and introduce an emission-based road tax for passenger vehicles and light vans.
The changes concern vehicles registered in the Republic after the law comes into force at the beginning of 2019.
The changes will see a rise in the road tax of passenger vehicles with high CO2 emissions and a rise in the road tax of newly registered passenger vehicles and vans according to their age.
On top of this, road tax charged on used vehicles imported after the law comes into force will also include additional charges based on their age.