Cyprus Mail
Cyprus

Government backs down on online transaction charge (updated)

The government on Friday withdrew a decision to charge the public 50 cents for every online transaction with any government service starting in March.

It came after a public outcry and criticism of the government which had promised less red tape and more e-government.

Reviewing the decision, the government said it had taken into consideration the need to encourage online transactions, which was more important than raising the cash.

The decision also includes a 50 cent charge per transaction when paying the road tax online, which was scheduled to start on January 7.

The auditor-general’s 2012 report said paying road tax fees via the internet has greatly facilitated the Road Transport Department’s operations but it has seen the government charged a fee by banks, which comes to roughly €1 million per year.

The auditor-general recommended that the department, in consultation with the communications ministry and finance ministry, seek ways to renegotiate the agreement they have with JCC — a card processing company owned by banks — to reduce the costs incurred by the online processing operations of the department.



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