Car registration fees scam being investigated

The authorities are investigating alleged abuses by car owners, public service garages and in some cases car importers who declare certain vehicles will be used as self driven or chauffeur driven cars when they are actually used privately, sources close to the government said.

According to the sources, vehicles were being bought by public service garages on behalf of individuals who then used them regularly and in most cases owned them. These vehicles are given a K plate (used for hire cars) or Y plate (chauffeur driven) saving thousands of liri in registration fees.

The sources said that following meetings between the Finance Ministry and the Malta Transport Authority it was decided what action should be taken to ensure that abuses would be curbed.

A spokesman for the ministry confirmed that the investigation was being carried out.

"The government is being vigilant to ensure that regulations are not abused and also to make sure that any loopholes are plugged."

The ministry spokesman said it was not prudent to give further information while the investigation was under way.

The sources said the authorities were now in the process of investigating each vehicle, asking for receipts of hire and other pertinent data to make sure that the people or entities in whose name these cars were registered were paying the correct amount of VAT and tax on capital involved in the purchase of the vehicles.

Transport Minister Censu Galea said the government had granted concessions to garage owners for very valid reasons. "These concessions are aimed at encouraging garage owners to upgrade their fleet, to offer a better service across the board.

"On several occasions during talks with the parties concerned I had made it very clear that abuses have to stop. There are various ways to curb abuses. For instance, anyone driving a Y-plate vehicle has to possess a special licence for chauffeur driven cars. We are committed to ensuring that the system is not abused."

The sources said abusers faced serious repercussions.

"These could include the withdrawal of a garage licence in the case of public service garage owners, apart from fines under the country's financial laws."