EU: Excise duties unfairly favour Cypriots

THE EUROPEAN Commission has formally asked Cyprus to change its legislation on import and excise duties of new cars because it is more favourable to Cypriots than other EU nationals, it was announced yesterday.

The commission said Cyprus should change these rules within two months or face possible sanctions.

“If within two months there is no satisfactory response from the Cypriot authorities, the Commission may decide to refer the matter to the European Court of Justice,” an EU statement said.

The Commission said under the current legislation, Cypriot citizens, nationals and descendants, received more favourable treatment that other EU citizens when it comes to new passenger car import and excise duties.

“Under Cypriot legislation, EU nationals who set up permanent residence in Cyprus may only benefit from an exemption from import and excise duty when they import a new car if they are not practicing any profession in Cyprus,” the Commission said.

However, the same condition does not apply to Cypriots who return to the island for permanent settlement.

“Therefore, the Commission is of the opinion that the rule discriminates against non-Cypriot EU citizens and is contrary to Article 18 of the Treaty on Functioning of the European Union.”

The law also violates the freedom of movement for workers and the freedom of establishment, the Commission said.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.