CYPRIOTS still have to pay 10 per cent more than the average EU citizen to buy cars despite a readjustment in consumer tax based on engine capacity last November.
Last year, car prices were more expensive by up to 42 per cent compared to the rest of the EU, meaning that a Cypriot had to work four times as much as a Luxemburg citizen to pay for an average car.
But according to Politis, even with the re-adjustment in consumer tax, Cypriots still have to work seven months to pay for a car whereas a Luxemburg citizen would work for two.
A European Commission report released two weeks ago shows the need for further reductions in consumer tax on the island especially on cars with high engine capacity, if we want to follow EU practice.
Apart from the gradual scrapping of consumer tax, the EU also wants Europeans to be able to purchase their cars with three monthly salaries.
According to the report, which compares prices before and after tax for 90 popular car models, Cypriots still pay more for their cars even after the consumer tax re-adjustment.
In Cyprus, we have to pay 32 per cent more than the average EU citizen if the price is set by income per capita.
According to the report, cars up to 1.6 litres in engine capacity are cheaper than average in the EU, whereas cars with engine capacity higher than 1.6 are up to 50 per cent more expensive.
The purchase of 4×4 vehicles in Cyprus after the tax re-adjustment is now more difficult. The cheapest cars on the island are up to €2,000 (15 per cent) cheaper than the rest of Europe, whereas low engine capacity cars are up to €1,000 (six per cent) cheaper than the average in the rest of the EU.
In more expensive categories, cars are up to €9,000 (30 per cent) more expensive than in other EU countries.
According to the report, Cyprus is ranked the seventh most expensive EU state in car prices. Denmark is the most expensive, with its policy forcing its citizens to use public transport. But if prices were set based on income per capita, then Latvia is the most expensive country with Latvians paying 50 per cent more than what other Europeans pay.
