Everyone will have to pay road tax

7 November 2015
140 Views

Greece’s road tax system is set for big changes with Alternate Finance Minister Tryfon Alexiadis’s plan to force all vehicle owners to pay a levy, even if they had hitherto been exempt.

Sources say that two ministerial decisions will be issued early next week regarding road tax and the heating oil benefit. In terms of road tax, which is payable by the end of the year, the plan will provide for the inclusion among paying drivers of those who acquired their vehicles after 2010. Therefore, some 100,000 vehicle owners will have to pay road tax for the first time, meaning all car and motorcycle owners will now be burdened with the levy.

As a Finance Ministry official explains, the owners of vehicles of 1,400 to 1,600 cc who currently pay no road tax because their vehicles emit lower levels of pollutants will now have to start paying, while the ministry intends to reduce medium-sized vehicles’ tax as well as that of older vehicles that currently pay a high tax.

Regarding the heating oil benefit, the plan provides for the number of recipients this year to be reduced to 700,000 from 1.1 million last year. In fact, 5.5 million households were entitled to the benefit but only one in every five actually applied for it. This year some 2.3 million households are entitled to it and the ministry expects applications from 700,000. The plan will offer the benefit to married couples with annual incomes of up to 20,000 (increasing by 2,000 euros per child) and with property assets that add up to no more than 150,000 euros in objective value.

The rate of the subsidy will amount to 25 cents per liter, against 35 cents per liter last year. Given the lower retail price of the commodity (thanks to the drop in international oil rates), the subsidy will reduce the price for benefit recipients to below 60 cents per liter.

The first installment of the benefit will be paid out in January 2016 and the second in May, which means there will be no advance payment as in previous winters.

You may be interested

Greece-Cyprus-Jordan trilateral to focus on energy and Cypriot issue
GREECE
shares45 views
GREECE
shares45 views

Greece-Cyprus-Jordan trilateral to focus on energy and Cypriot issue

Panos - Jan 16, 2018

Greece, Cyprus and Jordan are expected to sign the declaration on the Cypriot issue and natural gas, among other agreements…

144K more jobs created in Greece in 2017 than lost; majority low-paying part-time employment
FINANCE
shares46 views
FINANCE
shares46 views

144K more jobs created in Greece in 2017 than lost; majority low-paying part-time employment

Panos - Jan 16, 2018

New job spots exceeded redundancies in Greece over the previous year, 2017, by nearly 144,000, according to figures released on…

Protests and clashes in Athens as parliament passes more reforms
GREECE
shares44 views
GREECE
shares44 views

Protests and clashes in Athens as parliament passes more reforms

Panos - Jan 16, 2018

An estimated 20,000 people protested outside the Greek parliament on Monday where lawmakers passed a package of reforms demanded by…

Leave a Comment

Your email address will not be published.