Mobility Basic Figures

According to research within the EU funded project ALTERMOTIVE the passenger vehicles total stock in Cyprus has grown from about 64,000 cars in 1974 to more than 400,000 cars in 2007. About 90% of the passenger vehicles are fuelled with gasoline around 10% with diesel. The percentage of alternative fuel vehicles is very small (0.09% for hybrid vehicles, and 0.01 % for electric cars). In absolute figures, 427 hybrid vehicles and 37 electric cars have been registered in the year 2008. According from latest statistics from March 2011 in Cyprus there are registered 22 electro cars and 2 light duty electro vehicles. Motor vehicles newly registered during 2009, decreased by 25.7% to 50,291 from 67,722 in 2008. Private saloon cars newly registered decreased by 26.2% to 36,252 from 49,100 in 2008. Vehicles of all types and categories on the Register of Land Transport Department totalled at the end of 2009 to 738,025, compared to 720,749 at the end of 2008.

The Cyprus government is considering using biofuels for the needs of its captive fleet. The measure is aiming to stimulate the biofuel market in Cyprus since the government purchases fuel from the distribution chain of the local oil marketing companies. According to the current two-year contract for supplying the governmental sector with fuels, the fuel supplier has the contractual obligation to handle any volumes of biofuels provided by the government. The supplier is mandated to store the biofuels, to blend them with conventional fuels and to deliver them to the governments installations.

There is planend a pilot project of the Cyprus Ministry of Trade, Industry and Tourism which include the purchase of 20-30 electro and plug-in hybrid cars in the coming years. The vehicle will be made available residence of low developed mountain regions for free of costs. The project should be financed by EU regional fund.

The local governments of the larger cities in Cyprus aggred to a plan to set up dedicated free parking palces for electro vehicles in urban areas. Furthermore ther plan to set up a publically accessible recharging infrastructure.

The geo-information system European Environmental Atlas does not lists any alternative fuel refuelling stations in Cyprus. Other information sources show the same result.

Tax Incentives

There is an uniform VAT of 15% for the acquisition of vehicle.

The vehicle registration tax depends on the cylinder capacity and on CO2 emissions. A calculation schema on CO2 emission is applied which set a basis tax amount for an emission level of 200 gr/km. A reduction of 30% to this basis value is given for vehicles emitting less than 120 gr/km, a reduction of 20% for vehicles emitting between 120 gr/km and 164 gr/km as well as a 10% reduction to vehicles emitting between 165 gr/km and 199 gr/km. An additional tax volume of 10% of the basis value is given to vehicles emitting between 201 gr/km and 250 gr/km as well as of 20% for vehicles emitting more than 250 gr/km. For electro vehicles the registration tax is about the half of conventional vehicle technology.

The annual circulation tax depends as well on the cylinder capacity and on CO2 emissions. The rates are reduces by 15% for cars emitting less than 150 gr/km CO2. For electro vehicles the circulation tax is about the half of conventional vehicle technology.

There is an uniform VAT of 15% for diesel and gasoline. Biofuels used for transport are exempt from consumer tax. There is further an excise duty on fuels of 0.299 EUR for gasoline and 0.245 EUR for diesel. Within the framework of the multi-annual program 2007-2010 biofuels used for transport purposes will be provided without excise tax exemptions (KDP 405/2007). Total tax exemptions on biofuels are justified in Cyprus, since petrol and diesel are taxed with the minimum levels of taxation.

Grants

The Cyprus Ministry of Trade, Industry and Tourism granted a premium of 700 EUR for the purchase of an electric car (maximum 7 cars per company/Person); 1,200 EUR is granted at max for the purchase of a new dual propulsion vehicle/hybrid car; 700 EUR is granted at max for the purchase for cars emitting less than 120 g/km. In the last two years a total sum of 22,566 EUR was granted hereunder.

There is an incentive for withdrawing an old vehicle form circulation. They are divided into 3 categories depending on whether the vehicle holds a registration licence or not, and on whether it will be replaced by a new vehicle or not. The level of subsidy varies from 257 EUR to 1,800 EUR (for vehicle category M1 a grant of 1,800 EUR is given if the emissions of carbon dioxide of the new vehicle is less than or equal to 165 gr/km per km). The total governmental budget for the programme amounts to 2 m EUR in 2010.

In the Public Loans Fund (PLF) framework the Council of Loan Commissioners (LC) are empowered to grant loans to public and local authorities, co-operative societies, individuals and companies, based on approved by the Council of Ministers government lending schemes, in order to finance works and projects which generally advance the development of Cyprus. One of the main lending schemes which are presently in operation are loans to public road and transport companies for the purchase of new or replacement of old urban buses and rural buses/taxis for the development of public road transport. All loans issued are published quarterly in the Official Gazette of the Republic with details on the borrowers, the purpose and amount of loans.

A grant scheme for energy conservation and the utilisation of renewable energy sources has been operated by the Energy Service under Law N.33(1)/2003 since February 2004. The scheme covers a large spectrum of investments in energy conservation, cogeneration and utilisation of RES, including the production of biofuels. Under the grant scheme there is a specific provision for funding investments for the production of biodiesel for transport. The grant provided under the scheme can reach 40% with the maximum eligible grant being 680,000 EUR under specific criteria.

Regulation

A specific Law on the promotion of the use of biofuels or other renewable fuels for transport purposes (N.66/(1)2005) has been in force since 24/6/2005. The Law adopted provisions of the directive 2003/30/EC and set the framework for the promotion of biofuels or other renewable fuels in Cyprus. Oil marketing companies will be obliged to replace a minimum percentage of conventional fuels with biofuels based on their energy content over the years 2007 to 2010 (2010 there is a 2% replacement obligation; there is an indicative target of 2.5%). Specifically, the Law empowers the Minister of Commerce, Industry and Tourism to launch, in cooperation with the Minister of Finance, multi-annual programs through which tax exemptions and/or reductions are applied to biofuels in accordance with Article 16 of Directive 2003/96 EC of 27 October 2003, restructuring the community framework for the taxation of energy products and electricity. The above Law was amended by Law N.58/ (1)2007 in order to apply tax exemptions on biofuels within the framework of the multi-annual program. Law N.58/ (1)2007 has been in force since 30/5/2007.

Unleaded fuels are banned in Cyprus since 2004. A maximum of 10 gr/litre sulphur is allowed for diesel and petrol.

The current level of public sector procurement makes a significant impact on the economy of Cyprus in sectors such as construction and public works, transport, energy, telecommunications, and heavy industry. Local and regional authorities and public utilities in the Republic of Cyprus regularly purchase goods, for example: computers, office equipment, public transport. The actual law on public procurement “The Coordination of Procedures for the Award of Public Works Contracts, Public Supply Contracts and Public Service Contracts and for Related Matters Law, 2006” defines the possibility to include environmental criteria in the process of public tendering. The roles for applying environmental criteria are generally explained in a so called “best practise” guideline for public procurement. However, no reference can be made for the use of standardised environmental criteria for the vehicle purchase. Also no reference is given with regard to the establishment of joint procurement schemas in order to purchase clean vehicles.

THE COORDINATION OF PROCEDURES  FOR THE AWARD OF PUBLIC WORKS CONTRACTS,  PUBLIC SUPPLY CONTRACTS AND PUBLIC SERVICE CONTRACTS AND FOR RELATED MATTERS LAW, 2006

PUBLIC PROCUREMENT BEST PRACTICE GUIDE - CHAPTER 2: PROCUREMENT STRATEGY

PUBLIC PROCUREMENT BEST PRACTICE GUIDE - CHAPTER 3: PREPARATION AND ANNOUNCEMENT OF TENDER PROCEDURE

PUBLIC PROCUREMENT BEST PRACTICE GUIDE - CHAPTER 4: EVALUATION AND CONTRACT AWARD

Vehicle Registration schema (Πληροφοριακό Έντυπο Ενδεικτικών τιμών Φόρου Εγγραφής οχημάτων που θα ισχύουν από 1.1.2008)