The Government's attempt to increase the road tax for used vehicles that emit more pollutants has provoked a series of reactions. The fire-increases provided for in the relevant bills, which are now in Parliament and are expected to be passed in laws within the first quarter of 2019, have brought protests from importers of used vehicles, who speak of expediencies and efforts to serve the interests of importers. new vehicles. At the same time, the opposite view says that everything is done for environmental purposes, as the main goal of the Government is to reduce pollutants that have lethal effects on the health of citizens.
"Purposes and interests"
However, the proposed regulations provoked a strong reaction from importers of used vehicles. In statements to "Simerini" the president of the Association of Importers of Used Cars, Marios Kalios, said that "they are beating the poor people and want to load the 10 million euros that they will lose from customs duties". He further added that they have no objection to paying for the polluting cars, but he wondered why they want to punish the 4-6 year old vehicles that do not pollute and are the ones that the middle class buys. "We agree that vehicles over 7-8 years old should be punished for polluting," he added. However, he noted that with this data going to be created, people will not change vehicle and in a few years the fleet will grow further in age and the problem with pollutants will remain. "So," he noted, "it is not us who will be hurt, but the middle class."
Mr. Kalios spoke about expediencies and interests, stating that "the importers of new vehicles clearly benefit". He further explained that, based on what is provided in the Government bills, if someone goes to buy a new vehicle (hence Cypriot) and someone else buys the same model but used (hence imported), which emit the same pollutants, the one who will buy the imported will shoulder the proposed fees, while the one with the Cypriot no. He also gave the example of imports of hybrid vehicles from Japan, which, as he said, do not pollute but because they are imported they will have to pay the fee.
Asked which other industries will be affected by the proposed changes, Mr. Kalios said that 65% of the vehicles are used, so several industries that live by them will be affected, such as engineers, car painters, etc.
Reason for unconstitutionality
In the meantime, as the Lawyer of the Association of Used Vehicle Importers, Nikos Clerides, told "S", in case the bills are passed as they are, then the importers of used vehicles will take legal action against the Government. According to him, "Article 28 of the Constitution for equal treatment is violated because the importers of new vehicles benefit and the importers of used vehicles are destroyed".
"If the bills are passed, all companies that deal with the trade and import of used cars will be closed," said Mr. Clerides. He further accused the Department of Road Transport (TOM) of not following the proper public consultation procedure. As he said, the Association was invited and participated in three meetings that took place and submitted its views, on the basis of which the TOM made amendments to its original proposal and prepared a second text. Then, however, he continued, without any warning and information, the TOM presented them with a third proposed bill, which the Association does not agree with, as it does not have as a criterion the need to adapt to the EU regulation, but the only criterion it sets is the age of the vehicles.
The only goal is to reduce pollutants
For its part, the Association of Importers of Motor Vehicles (SEMO), ie new vehicles, did not want to make an official statement on the matter. However, circles of importers of new vehicles told "S" that "the law is not made for us, it is made for pollutants". The same sources said that the state is forced to create legislation to reduce emissions from old cars, which account for 70% of vehicles registered in Cyprus, while in England, for example, this percentage does not exceed 1%.
"European obligation the new legislation"
Responding to the protests of the importers of used vehicles, the Director of the Road Transport Department, Sotiris Kolettas, denied that there was no consultation. "We consulted with all those interested, took into account the suggestions and ended up somewhere in the middle. "Neither they nor they are satisfied," he added. Furthermore, he stressed that we have an obligation to proceed with the legislation because this is a European directive, which had to be adopted from January 1, 2019. Mr. Kolettas stated that today the average age of vehicles in Cyprus is 15 years, while indicated that unless this situation changed, the fleet would not be renewed and pollutants would increase.
What the government is proposing
With the two bills submitted to the Parliament, the Government proposes the abolition of the excise tax on vehicles and the increase of the traffic fees, based on the pollutant emissions and the cubic capacity of the vehicles. The bills stipulate that the annual registration permit will be determined first on the basis of pollutants emitted by a passenger car up to 9 seats. Specifically, the calculation for pollutants will be done as follows:
part of mass less than or equal to 120 gr / km - 0,50 cents per gram, with a maximum amount of 60 euros,
- 121 gr / km up to 150 gr / km - 3 euros per gram, with a maximum amount of 450 euros,
- 151gr / km up to 180gr / km - 6 euros per gram, with a maximum amount of 1.080 euros,
- greater than 180gr / km - 12 euros per gram, with a maximum amount of 1.500 euros.
At the same time, the entire annual license will be charged a lump sum, depending on the age and fuel type of the vehicle when it is first registered used. This regulation applies to passenger vehicles up to 9 seats and goods transport vehicles with a maximum mass of 3,5 tons. Charges start as follows:
- vehicles from 1 to 2 years, for gasoline there is no charge, while for diesel the charge is set at 100 euros,
- vehicles from 2 to 3 years, for gasoline 50 euros and for diesel 200 euros,
- vehicles from 3 to 4 years, for gasoline 100 euros and for diesel 300 euros,
- vehicles from 4 to 5 years, for gasoline 250 euros and for diesel 500 euros,
- vehicles from 5 to 8 years, for gasoline 500 euros and diesel 1000 euros,
- vehicles from 8 to 10 years, for petrol cars there is a charge of 750 euros and for diesel cars 1500 euros,
- vehicles 10 years and older, for petrol engines 1000 euros. And for diesel cars 2000 euros.
It is noted that these fees apply to cars that will be registered from the beginning of 2019 and not the existing ones.
At the same time, the Government proposes with the two bills a new incentive plan, based on which in case someone withdraws a vehicle aged 15 and over and buys a new one, then he will be granted the registration of the vehicle as well as the registration permit for the first five years.
Source: Sigmalive