To tax or not to tax
Anger and frustration over the high tax on cars in Malta is understandable. I agree that it precludes many from upgrading their vehicles and forces some to live with the old clunker. I would imagine that most driving Maltese would object to this except...
Anger and frustration over the high tax on cars in Malta is understandable. I agree that it precludes many from upgrading their vehicles and forces some to live with the old clunker. I would imagine that most driving Maltese would object to this except for, perhaps, the auto mechanics.
As an American (of Maltese descent), it is difficult to accept the car tax. Americans love their cars and, though we normally pay tax on vehicles here, it does not compare to what the Maltese pay. This applies to auto fuel as well where Europeans pay significantly more because of taxes.
On the other hand, I believe it is important to view the tax liability as a whole in a country before criticising one aspect if it. One needs to factor in all taxes - income, automobile, real estate, sales, etc... How does Malta compare to other EU members there?
For example, in America, we have real estate tax where Malta does not. Could a Maltese imagine paying a smaller auto tax but paying Lm4,000 annually in tax to live in a modest house? Or Lm2,000 tax to live in a flat?
My point is that the money has to come from somewhere. If the car tax is abolished, then how will the government fund public services, facilities, improvement projects, subsidies, etc...?
Also there may be an intended benefit to the car tax: Many Maltese don't have to pay it at all. Public transportation is such that many can rely solely on that. Unlike many other forms of tax, this can be circumvented.
It seems the strategy behind the car tax is to procure funds from those who can actually afford it while sparing those who can't. In effect, this tax insulates those who are less economically fortunate.
I am taking an ambivalent stance on the auto tax. I could only imagine the frustration of the Maltese citizen who wants that nice car but can't because of the tax. But the tax alternatives might not be any better and could very well be worse.
By asking to remove the car tax, it may be wise to refer to a relevant proverb: "Be careful about what you ask for because you just might get it".