Cyprus Referred To ECJ Over Car Import Tax

By Editorial 31 October, 2011

The European Commission has announced its decision to refer Cyprus to the European Court of Justice as it considers that Cypriot law discriminates against non-Cypriot EU citizens who transfer vehicles into Cyprus.

Under Cypriot legislation, EU nationals who set up a permanent residence in Cyprus are only exempt from paying excise duty on a new imported car if they do not practice a profession in Cyprus. Such a condition does not apply to Cypriot citizens, nationals and descendants who return to live permanently in Cyprus.

The Commission said the tax treatment contravenes EU rules which guarantee the free movement of workers and the freedom of establishment.

The Commission's decision to refer the case to the Court follows a failure by the Cypriot authorities to amend the legislation in question within the two-month time period given by the Commission in a reasoned opinion sent to them in January 2011.

Tags: Individuals | Expatriates | Court | Tax | European Commission | Law | Excise Duty | Professionals | Legislation | Cyprus | Europe |


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