HIGHWAYS

closed

Road user taxation policy is not related specifically to investments in the highway network, but the Government levies taxes to raise general public revenues. Taxes on highway users consist of taxes and duties on vehicles and gasoline and registration fees. Total annual collections from all user taxes were on the average about 7 times the total annual expenditure on roads in 1969-71. At the request of the Government, the proposed project includes a study of road user charges and regulations to determine future revenue potential and to examine the merits of possible modification of the existing tax structure. The Highway Project consists of: (a) construction of a four lane divided highway between Nicosia and Morphou (32 km), including supervision by consultants; (b) study of highway planning and organization including the preparation of a high improvement and maintenance program; (c) feasibility studies covering 170 km. of new roads and detailed engineering of about 90 km. of high priority road sections; (d) studies of road user charges and vehicle weight regulations; and (e) training of D.P.W. staff in highway planning and design, construction supervision and highway maintenance.