Speaking to reporters after a cabinet session, Lakkotrypis said the proposals relating to the introduction of gas-fuelled cars were approved.

“The most important proposal is the tax policy, which sets tax on propane at €0.07 per litre,” Lakkotrypis said.

“This is the lowest allowed by the European Commission, and will remain thus until 2022.”

Lakkotrypis said the tax compares favourably to the tax levied on 95-octane petrol, which currently stands at €0.48 per litre, as well as the tax on diesel, currently at €0.45 per litre.

“This favourable tax policy was decided jointly with the Finance ministry for two reasons: one, to offer alternative fuel to consumers; and second, so that the seven-year fixed tax – provided the European Commission’s policy doesn’t change – helps promote investment into the conversion of both gas stations and vehicles to accommodate this new motor fuel,” said Lakkotrypis.

The Energy Minister said this arrangement will offer an alternative fuel that is cheaper for motorists, and will also catalyse the investments required for its introduction.

Lakkotrypis confirmed that the reduced tax only will only apply to propane used as car fuel.

Source: Cyprus Mail