Tax Reform in the Cypriot Road Transport Sector
Adamos Adamou and
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Adamos Adamou: Department of Economics, University of Cyprus
Cyprus Economic Policy Review, 2013, vol. 7, issue 1, 87-114
The road transport sector contributes a significant fraction of government tax revenue in many countries, including Cyprus. Most revenue comes from excise taxes on vehicles and fuel and from road (circulation) tax. There is currently a need to modernize the tax system in order to provide a steady stream of revenue and to abide by environmental taxation principles increasingly being applied in Europe and elsewhere. We discuss the theoretical justification for transport sector taxation and the shortcomings of the current system and propose reforms aimed at achieving the twin goals of revenue stability and pollution reduction with minimal market distortion.
Keywords: vehicle taxation; carbon taxes; road tax; transport sector taxation. (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:erc:cypepr:v:7:y:2013:i:1:p:87-114
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