Find out what is changing in the car market with the new hike

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to 3879The new system of setting road tax approved by the Council of Ministers has two basic elements: the road tax will be determined on the basis of carbon dioxide emissions for what will be registered after the law is passed and enters into force, while for what is already registered or will be registered until the law enters into force, will pay the fees they pay so far, with an increase of € 10, € 20 or € 30 depending on the displacement and emissions.

Essentially, the majority of the vehicles already in circulation - middle category - will be charged with additional € 20 while those with engines over 2.050 hp. will pay € 30 more than now. The additional tax on existing cars is imposed in consultation and at the suggestion of the Troika, in order to increase the state revenues and, in essence, means an increase of the existing traffic taxes by an average of 15-20%, while for the vehicles that will be registered by passage of the law and after, the increases in most cases are of these and higher percentages.

It should be noted that the intention of the government is to complete the discussion and approval of the bill before the end of the year, so that new fees apply with the renewals of marketing licenses for 2014.

At the same time, excise taxes are changing, which in general do not make much difference, in some cases there will be some slight increases, but there will be several cases with new models of medium and larger displacement that will have significant reductions, since they will also be determined based on pollutants.

The aim of all the increases is, on the one hand, to increase the state revenues from the registration and use of vehicles and on the other hand to cover at the same time the reduction of revenues brought by the change in the registration fees that already exist and will remain at € 150 regardless of type , the displacement and pollutants of each vehicle.

The new law essentially introduces the policy of encouraging the use of new cars, smaller in displacement and new technologies.

In the market, it favors sales of new ones compared to imported used ones, which even if they are 3 or 5 years old have older technology engines and are more polluting, as the automotive industries manufacture more and more advanced engines that maintain or increase their power but with less fuels and pollutants.

This will obviously be the main impact on the car market, while obviously already registered (used) cars will gain some more value compared to the situation today, especially for mid-size vehicles and very large capacity pollutants, due to the fact that they will have lower road tax.

However, it should be noted that as a counterweight to the road tax, the bill on excise duty provides for the import of used cars to introduce impairment rates based on age, mileage, general condition, propulsion system and vehicle type.

According to the government's calculations, according to information, the state revenues in total from the new system, will recover the losses from the registration fee and will have additional revenues of the order of 1 million for 2014, if the sales, which will gradually increase to reach 5 million in 2018, if there is a renewal of the fleet on the Cypriot roads, the existing vehicles with lower fares will be reduced and the newly registered - new and used ones will be increased.

In relation to the road tax to be determined on the basis of pollutants for vehicles to be registered after the approval of the new road tax, there are four categories of tax (both with the same rate of charge).

In the first category it is foreseen that the part of the mass of carbon dioxide emitted - CO2 (combined cycle) in grams per kilometer (gr / Km) of the motor vehicle will pay a registration fee of € 0,5 per gram / kilometer (gr / Km) . That is, a vehicle that has pollutants of 100 gr / Km will pay € 50 and one with 120 gr / Km will pay € 60. However, this category must be said to concern mainly two-wheelers, since now there are no more than 700 vehicles with such pollutants on the roads.

The second category provides that for the part of mass greater than 120 (gr / Km) and less than or equal to 150 (gr / Km) will pay a license fee of € 3 gr / Km. For example, a vehicle with carbon dioxide emissions of 140 gr / Km will pay for a license of € 120, which is formed from € 60 for the first 120 gr / Km (€ 0,5 X120 gr / Km) and another € 60 for the remaining 20 gr / Km (€ 3x20 gr / Km).

The third category provides that for the part of mass greater than 150 (gr / Km) and less than or equal to 180 (gr / Km) will also pay a license fee of € 3 gr / Km. That is, a vehicle with carbon dioxide emissions of 170 gr / Km will pay for a license € 210, formed from € 60 for the first 120 gr / Km of the first category (€ 0,5 X120 gr / Km), still € 90 for the remaining 30 gr / Km up to 150 gr / Km of the second category (€ 3x20 gr / Km) and another 60 for the remaining 30 gr / Km up to 170 gr / Km.

The fourth category provides that for the part of the mass of pollutants greater than 180 (gr / Km) will be paid € 8 per gr / Km. That is, for a vehicle with pollutants 220 gr / Km the license fee will be € 560 which is formed in the same way (€ 240 for the first 180 gr / Km and another € 320 for the remaining 40 gr / Km.

For trucks the road tax will be from 100 to 400 depending on their gross weight, and for buses from 200 to 736 depending on their seats.

There are also changes for vans and vans that have been converted into saloons.

Ten examples in all categories
The method of determining CO2 pollutants for each type of vehicle is determined based on European standards. However, because for some vehicles - mainly used imported from Japan - there is a Japanese standard that usually sets lower emissions than the European one, the bill provides a formula for determining the pollutants based on the official consumption of the vehicle, as well as a dispute resolution process.

See some examples of existing and new charges that will apply to specific makes, models and types of vehicles based on pollutants as defined on the website www. car-emissions.com, which is essentially the official database for this purpose for Britain and many other countries. The existing traffic fees can be found on the TOM website.

For example, a 220 MERCEDES-BENZ C-Class Saloon C 2009 CDI with a 2.149 hp engine. and pollutants 173 gr / Km, currently pays € 312. With the new fees, the same vehicle of the same year, if imported as used and registered, will pay a registration fee of € 219. The corresponding model as new (MERCEDES-BENZ C-Class Saloon C 220 CDI, 2012 with ECO Start / Stop) has an engine of 2.143 hp and emissions of 125 gr / Km will pay a road tax of only € 75.

> The MERCEDES-BENZ E-Class Saloon E 220 CDI, of 2012, with an engine of 2.143 hp. and pollutants 139 gr / Km now pays € 311 and with the new system will pay € 117.

> The HYUNDAI ix35 1.6l GDi 4 × 2 with 1.591 hp engine. and pollutants158 gr / Km with the existing legislation pays traffic taxes of € 95 while based on pollutants it will pay € 174.

> The KIA Sportage '1' 1.6 GDi 133bhp, with an engine also 1.591 hp. and pollutants149 gr / Km now has a road tax of € 95 while based on pollutants it will pay € 147.

> The 1.6 NISSAN Qashqai 2011 with engine also 1.598 hp. and pollutants144 gr / Km now has a road tax of € 95 while based on pollutants it will pay € 132.

> The BMW 5 Series F10 / F11, 520i Saloon with 1,997 hp engine. and pollutants 163 g / km, now pays a road tax of € 238 while with the new regime it will pay € 183.

> The TOYOTA Auris TR 1.4 D-4D of 2012 with an engine of 1.364 hp and 128 g / km emissions now pays a road tax of € 58 while with the new regime it will pay € 84, while the same model in the 2009 version with emissions of 132 g / km if registered as an imported used car will pay a road tax of € 96.

> The TOYOTA Yaris 1.33 VVT-i of 2012 with an engine of 1.329 hp. and pollutants 123 g / km now pays € 56 per year while with the new regime it will pay € 69, while the same model in the 2009 version with pollutants 136 g / km if registered as an imported used one will pay a road tax of € 108.

If we go to large vehicles (which in practice make up about 30% of registered vehicles) the picture is different.

For example, the BMW X5 Series E70 X5 xDrive30d with a 2.993 hp diesel engine now has a road tax of € 384, with emissions of 198 g / km in the 2012 version with the new fees it will pay € 576, while the exact same model in the version of 2009 has pollutants 217 g / km if registered with the new conditions will have a road tax of € 536.

> A LAND ROVER Range Rover Sport 3.0 V6 with emissions with engine 2.993 hp. diesel, now has a road tax of € 588, with pollutants 243 g / km, while with the new fees it will pay € 744.

Double fees for double cabins

According to the current legislation, the double cabins pay a license fee based on their displacement as they saloon, but reduced by 55%, while there is a maximum fee of € 300.

Under the new legislation, double cabins (and single cabins) will pay a road tax again based on displacement rather than emissions. Those with a displacement engine up to 1.650 hp. will pay a road tax of € 0,05 / etc. Double and single cabins with engines over 1.650 hp. will pay with the new provisions a traffic fee set at € 0,10 / cc. That is, a double cab with a 2.2 engine (which is the majority) now pays from € 133 to € 147. With the new forecasts, the same models will pay - existing and those that will be registered - from € 205 up to € 250, plus an additional 20 or 30 of the charge. That is, from € 235-280.

Essentially we have increases of up to 100%. According to the reasoning, the reductions in the double cabins (as well as the trucks and buses) were judged by the State Aid Superintendent to be state aid and should be abolished, hence the hot increases.

Source: FILELEFTHEROS