Filenews 21 July 2025 - by Fanis Makridis
The collection of fines for violations of the Road Traffic Code has evolved into a well-established lucrative business for Municipalities and communities.
As strange as it may sound to those who do not have the relevant legislation in mind, a respectable amount of the traffic offences committed throughout Cyprus and for which extrajudicial fines are issued, ends up in the municipal coffers. And this is on the basis of the legislation that is in force.
The data in the possession of "F" are indicative and show that for the year 2024, the money coming from out-of-court fines of the Police for traffic violations, as well as violations of the Code of Civil Procedure detected through phototagging cameras, is in the order of €20 million. €8.5 million ends up in the government, while the remaining €11.5 million goes to municipal coffers.
A relevant table, the content of which is known to our newspaper, proves the truth. The total amount obtained amounts to €19,730,871.
To better understand, it should be noted that according to the data, the Municipality of Limassol in 2024 received the amount of €2,709,275 from extrajudicial fines, the Municipality of Nicosia €1,709,037.50, the Municipality of Larnaca €1,852,647.50 and the Municipality of Paphos €1,108,794.50. Finally, the funds of the large municipality of Cyprus, this Strovolos, were credited with €1,073,785.
The mayor wondered
The rate of collection of fines from traffic violations and its dimensions is also highlighted by a letter between the mayor of one of the largest municipalities in Cyprus and an officer of the Police headquarters around the beginning of this year.
The Mayor in question reasonably wondered why his Municipality received only a few tens of thousands of euros from out-of-court fines for traffic violations, while on the contrary, the Municipality of a coastal city received a multiple amount which, according to our data, far exceeds €1.5 million.
The responsible senior officer in a long letter, and responding on behalf of the Chief of Police, Themistos Arnaoutis, explained exactly which legislation governs the whole issue.
In his letter, the Mayor had asked for clarifications on the distribution of "the extrajudicial dividends to be collected to the Municipalities", as he mentioned them, asking among other things to be informed about "the type of violations for which an out-of-court fine is imposed and what is granted to the Municipalities".
The answer
In his reply letter, the competent Police officer mentions exactly where the money ends up from out-of-court cases and for which traffic violations. From the answer, three main parameters emerge:
>> All receipts from extrajudicial fines for (1) violation of the speed limit and (2) non-use of a seat belt, end up entirely in the Fixed Fund of the Republic. There is no other legislative provision.
>> The amounts from offences provided for in the Motor Vehicles and Traffic Regulations (K.D.P. 66/1984, as amended). These revenues should be deposited in the Funds of the relevant Municipality or the Community concerned, within the territorial boundaries of which an offence was committed.
>> 80% of the amounts resulting from fines imposed for violations detected by photo-tagging cameras end up in the Municipalities. 20% should have ended up in the state, however, this provision is not implemented. The issue, according to the positions of the Police, is allegedly in the process of being implemented, through the computerized system.
Regulation No 73
Municipalities benefit from fines for traffic violations committed within their geographical boundaries, on the basis of Regulation 73 of the Motor Vehicles and Traffic Regulations. That regulation states the following:
1. Where an act or omission constitutes an offence both under these Regulations and on the basis of municipal or improvement councils, criminal prosecution and the assessment of the penalty may be carried out either on the basis of these or others, provided that no one is punished twice for the same offence
2. Where a financial penalty is imposed for an offence within municipal boundaries or improvement area, the sum of money shall be paid to the municipal treasury of the municipality or improvement area concerned.'
Crimes through cameras that enrich municipal coffers
In particular, with regard to the receipts from extrajudicial fines imposed through photo-tagging cameras, the provision and end up in the coffers of the Municipalities, is for the following offences:
>> Violation of a red traffic light (fund of the relevant Municipality / Community concerned) – the offence is provided for in Regulations 66A and 66B of the Motor Vehicles and Traffic Regulations (K.D.P. 66/1984, as amended).
>> Use of a mobile phone or other object while driving (fund of the relevant Municipality / Community concerned) – Regulation 58 (14) of the Motor Vehicles and Traffic Regulations (K.D.P. 66/1984, as amended).
>> Violation of the white stop line (which is engraved transversely, near the traffic lights) (fund of the relevant Municipality / Community concerned) – Regulation 58 (2) (d), of the Motor Vehicles and Traffic Regulations (K.D.P. 66/1984, as amended).
>> Failure to wear a protective helmet (fund of the relevant Municipality / Community concerned) – Regulation 59 of the Motor Vehicles and Traffic Regulations (K.D.P. 66/1984, as amended).
We remind you that as we mentioned above, the money from fines for violating the speed limit and for not using a belt, ends up entirely in the state coffers.
€6.4 million
However, it should be noted that an amount of €6.4 million is paid annually for the operation of the photolabelling system. This amount, based on the annual budget, is charged to the Police.
Municipal Policing
However, local authorities are also expected to be entrusted with policing tasks for which funds will have to be allocated. A relevant bill has been put up for consultation. In fact, at the beginning of July, the Minister of Justice, Marios Hartsiotis, had commented on the bill under discussion, saying that it emerged after a common desire of the State and the Municipalities themselves. In statements to the state radio, he had mentioned that Legal Advisors of the Municipalities have worked on the preparation of the bill, which is under study and elaboration. He argued that there is already agreement in principle on the content and purpose of the initiative. The Municipal Police, according to the minister, will operate within the administrative boundaries of the Municipalities with the aim of better and more effective policing, on a 24-hour basis. Its duties will include tackling noise pollution, illegal parking, smoking in prohibited areas, as well as "cracks" in tourist areas. He stressed that with the assumption of these responsibilities by the Municipal Police, the Police will be freed from issues of minor importance. Thus, as he commented, the Police will focus on more serious criminal cases and public safety will be strengthened.
