Sir,
DURING the last week or so, I have read many articles regarding the ‘new’ rules regarding taxation on motor vehicles.
I have witnessed people in tears at Paphos customs office, having been told the amount of tax they owed before customs would release theirs cars from bond.
It would seem, however, that if a person’s car was not in bond before May 1, then these car owners have been given an unofficial extension to drive the vehicle and decide which method of taxation they will opt for by the end of 2004, i.e. the old or new system.
I went to customs at 8am on the April 29 with an English friend to retrieve his car from customs at Paphos. He was refused permission to take delivery of his vehicle unless he paid some £9,000 in duty. When I challenged the customs officer that my friend’s vehicle permit still had two days to run, I was told that customs was not prepared to renew the permit for just two days. Not surprisingly, my friend has suffered as stressful three-week (so-called) holiday.
When my friend purchased his duty free vehicle in late March early April, there was no official notice from customs or his supplier (Toyota) that full taxation could be due from May 1.
Indeed, had my friend known this, he would never have bought the vehicle in the first place.
This person visits Cyprus about six times a year and contributes around £20,000 per annum to the economy (not counting his car purchase of £14,000).
No doubt, the Cyprus government can afford to lose this sort of income from my friend and, no doubt, many other people, who have the same feeling of being mislead and cheated.
When I referred the customs argument from the Cyprus Mail that dealers had been informed of the changes is advance, the local Toyota manager said that customs were not telling the truth. So who is?
When I spoke to the officer in charge at Paphos customs on May 5, he told my friend that Paphos customs had only had the new information from Nicosia for three days and that the best option for my friend was to export his car bash to the UK; and, guess what, he shrugged his shoulders.
From my own experience with customs, I can comment with conviction. I purchased a duty free car last year and duly paid the VAT and registration. Some weeks ago, I asked customs what the taxation due would be, should we decide to sell the car. On my first attempt I was told between £5,000 and £6,000. On my second attempt, I was told about £6,000.
A Cypriot who was interested in buying my car took a copy of my registration document to customs and was told £6,500 taxation would be payable.
On May 18, I again went to customs in Paphos to try to establish exactly the duty payable on my car should I sell it.
A customs official told me that she would calculate the tax and began to complete some official forms. From what my car dealer had told me, the taxation was now based on the cc rating of the car, plus VAT, minus a reduction for the car’s age: I expected about a five-minute wait.
After watching the customs officer at her desk for 25 minutes processing information between calculator and document, she approached me and said: “I have to get my senior officer to check the calculations.”
During the next 40 minutes, the lady who had completed the forms was called in to her superior’s office twice and had to make alterations to her calculations.
Eventually, the senior officer approached me and told me the amount. I asked if could have a copy of the form and was refused.
Another lady within earshot asked if the officer could explain how her taxation figure was reached and she was asked “why, are you an accountant?”
I am sure that customs must have had a very difficult time over the last few weeks, but the rule changes and the effects have been available to government departments for a long time, according to EU sources.
I have decided to leave Cyprus and, if I pay the taxation due on my car, will pay around £5,500 sterling more than if I had bought the car in the UK, duty paid.
Cyprus has given me much pleasure, but I hope that in the future, other residents do not have to battle with government departments in the way that I have.
Charles Glover, Paphos
