ECONOMY

Tax cut to kick-start car trade

A recent cut in road registration tax by the government will help breathe life into the sector after vehicle sales plummeted by 40 percent last month, according to a report made public yesterday. A weekly report by Alpha Bank said the tax cut «will contribute to an increase in sales by car and motorcycle traders, as was the case in Turkey which implemented the step at the start of 2009.» Earlier this week, the Economy and Finance Ministry cut the registration tax included in the price of new cars and motorcycles by 50 percent as a means of encouraging motorists to trade in their old car for a new one. The cut, applicable over the next four months, will enable motorists with an eye on the higher end of the market to save up to 4,400 euros on their purchase. Data from the National Statistics Service show car sales in March fell by 40.1 percent year-on-year, after annual drops of 40.5 percent and 34.5 percent in January and February respectively.