Registration tax on second-hand cars

May I share a reply I received from Signpost Service legal experts for the EU regarding the registration tax which is being charged by local authorities on imported second-hand cars from other EU countries.

"Vehicle registration tax is regarded as a form of internal taxation and is charged on first registration of a vehicle in certain member states. It is permitted in the EU provided it does not operate to protect domestic production.

"Levying non-graduated taxes on imported second-hand cars raises a difficulty in the EU, especially where domestic second-hand cars are not taxed in that capacity because they were taxed earlier when new. The European Court of Justice has agreed that this method of taxation is permissible but that it may not exceed a maximum amount equal to the residual tax incorporated in the value of similar domestic second-hand cars."

As can be seen, this is not the case in Malta and whoever imports a second-hand car from another EU member state is being charged thousands of liri to register and use in our country.