Fleet News

Cyprus faces action on EC tax

THE European Commission has taken infringement procedures against Cyprus over taxation applied on the registration of secondhand cars brought into the country from other EU Member States. According to the EC, the rules are applied in a way that may breach EC Treaty provisions on equal treatment of domestic products and those of other Member States.

EU taxation and customs commissioner Laszlo Kovacs said: ‘Member States are free to introduce registration taxes for vehicles. But they must respect the Treaty principle of non-discrimination between domestic and EU products as well as secondary community law.’

The request to Cyprus is in the form of a ‘letter of formal notice’, the first stage of the infringement procedure laid down in the EC Treaty. Cyprus is requested to reply within two months.

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