NEWS

Sweeping changes in vehicle taxation are coming

Sweeping changes in vehicle taxation are coming

Changes in the taxation of cars in two installments are planned by the leadership of the Ministry of Finance.

Initially, arrangements will be promoted, in which citizens who have declared stillness of their vehicles will be reissued for a limited time by paying road tax attributable only for this time and not throughout the year. In the second phase, provisions will be legislated, that will make reductions in the amounts payments for all private cars and luxury taxes for vehicles with engines above 1,928 cc. According to information published by the newspaper "Eleutheros Tipos", in the coming weeks the Parliament legislation which would establish the analog road tax will be tabled.

With this arrangement taxpayers that have stilled their private cars having deposited their plates to the competent tax office may, if they wish, could either reset their cars for a period of one month, getting back their temporary signs and being charged for one month of the road tax for the year 2014 or to assign their vehicles at any time during the year until 31 December, taking back the signs and paying to the State road tax attributable to the period during which the vehicle will be enabled. In this case, time traffic of more than 15 days within a month will be considered a whole month while smaller period shall be disregarded.

For example, if a taxpayer resubmits his car into service on 13 June 2014, the period for which he will pay road tax will be from 01.06.2014 until 31.12.2014. Therefore, this taxpayer will have to pay 7/12 of the annual circulation taxes corresponded to vehicle. If another taxpayer resubmits his car on July 20, 2014, the period for which he will need to pay road tax will be from 08.01.2014 until 31.12.2014. Therefore, this taxpayer will have to pay 5/12 of the annual circulation taxes corresponded to vehicle.

As mentioned in the newspaper, another bill which is scheduled to be tabled in the Parliament this summer or autumn will include even more significant regulations on the taxation of private cars, which will provide reductions of publications for all cars. The reductions will attain to the levels of 30% and will apply to income in 2014, which will be taxed in 2015. Also, reductions in luxury taxes for private vehicles with engines above 1,928 cc will be provided. Since luxury taxes are calculated as a percentage of subsistence items, the reduction of items by 30% would result in a corresponding reduction in luxury living taxes.