ECONOMY

Creditors oppose extension to car scrappage program, quarterly road tax

creditors-oppose-extension-to-car-scrappage-program-quarterly-road-tax

The country’s creditors oppose a government proposal to extend until June an incentive to encourage drivers to take their old vehicles off the roads by offering them a subsidy to go toward the purchase of a new one.

The opposition was expressed during talks between the creditors’ technical experts at the Finance Ministry on Wednesday.

Ministry officials say the delay in tabling the extension in Parliament is due to the creditors’ reluctance to issue their approval, which they added is creating significant problems for the local car sales market.

The experts also expressed reservations about the ministry’s proposal for a quarterly road tax to replace the annual payment of the levy.