The European Commission announced on Monday that it has decided to send Cyprus a formal request for information concerning the taxation rules applied on the registration of second-hand cars brought into Cyprus from other EU Member States.
According to the EC, the rules are applied in a way that may breach the EC Treaty provisions on equal treatment of domestic products and those of other Member States.
"Member States are free to introduce registration taxes for vehicles" explained EU Taxation and Customs Commissioner László Kovács, who continued:
"But they must respect the Treaty principle of non-discrimination between domestic and EU products as well as secondary community law".
The request to Cyprus is in the form of a letter of formal notice, the first stage of the infringement procedure laid down in Article 226 of the EC Treaty. Cyprus is requested to reply within two months.
If the Commission does not receive satisfactory response, it may proceed with the second stage of the procedure and ultimately bring the case before the Court of Justice.
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