IT HAS BEEN two weeks since the introduction of the new law on car taxes and second hand car importers are still having huge problems getting their cars out of bonded storage. This frustrating situation has developed because of bad planning and mismanagement by the Ministry, according to a press release by the Motor Vehicles Importers Association.
The new law on car duties was implemented after receiving a resounding majority vote in a Parliament on November 2. According to the bill, there are now four taxation categories instead of the previous six.
The policy on used cars has also changed. Previously, cars over six years old were taxed at 25 per cent over the regular rate but under the new bill, used cars face tax rates which decrease with the passing of every year – which means up to an 85 per cent discount for a nine-year-old car.
Another change in the old system is that taxation costs are now calculated based on pollution emissions. For new cars, all information is provided by their manufacturers. However, for used cars coming from countries such as Japan, this information is not provided.
The percentage of emissions in these cases has to be calculated by the Transport Department, who will be making a list after looking into cases and collecting the relevant information.
Aggelos Pitsilides, Secretary of the Motor Vehicles Importers Association criticised the relevant authorities for their lack of preparation. “It is very sad that even though the authorities responsible were aware of the contents of the new bill regarding emissions,” he said.
“They did not start collecting the necessary information until after the implementation of the law, resulting in many of our members’ businesses remaining closed”.
He went on to state his concern about the time being taken for the list to be compiled. “Taking into consideration the rates with which the authorities have been collecting information, it appears that it will take a long time for the list to be concluded,” he claimed.
The problem does not simply result in the inability of used car importers to conduct business, according to Pitsilides. “The situation is also causing irregularities in the market, because unlike our members, importers of new cars can carry on with their business properly,” he said.
It appears that members of the Transport Department will be working overtime in the near future in attempts to find a solution to the issue. They have reportedly assured the Vehicles Importers Association that the problem of the delays should soon be rectified.
