BUSINESS

Car-scrapping plan extended to May 20

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Economy

The government has decided to extend its vehicle-scrapping scheme, in which it subsidizes the new car purchases of owners who take their old vehicles off the roads, until May 20, although the subsidy will be cut by 50 percent from last year.

The measure will be brought to Parliament in the next few days, and, once signed by Finance Minister Euclid Tsakalotos, will apply retroactively from January 1 – bringing great relief to the thousands of prospective buyers who have the scrapping documents but were unable to proceed with their new acquisitions.

That paper will be accompanied by an amendment providing for a new extension until December 31 for the customs clearance of used cars meeting the Euro 5 directive on low emissions.

Tsakalotos has also signed a decision for the establishment of a committee that will submit proposals concerning legislative interventions in the overhaul of vehicle taxation, which will include road tax.

The commercial value of each vehicle will be the criterion for the calculation of registration tax, road tax and the income estimates based on assets such as vehicles owned.

Sources say that engine size will no longer matter for the calculation of those taxes. The committee will have to submit its proposals to the ministry by April 29.

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