Home for old bangers

Recently two well-qualified contributors to this newspaper stated that the existing car registration tax was designed to limit the number of second-hand cars imported into Malta and thus stop it from becoming a dumping ground for old cars.

Although this aim is admirable, it seems to me that the existing registration system has not only failed to achieve this aim, it has actually been responsible for the Maltese roads becoming full of old cars and very old cars at that. How? Why? Well, let me explain.

Many Maltese quite rightly want and need a car. They save and save but can only afford a limited budget.

Let's say €7,000 (Lm3,000). A lot of hard-earned money but not enough for a new car so second hand it must be.

Now in the UK that sort of money would buy a very nice two- to three- year-old car.

Not in Malta though. The registration tax on a second-hand 1300-1500cc car amounts to €6,046 (Lm2,595) including VAT so that leaves €954 to pay for the car. The second-hand car dealers have to buy the car, ship it to Malta and make a profit for themselves - all out of this €954. So how much do they spend on the car? Answer - as little as possible.

No wonder Malta is full of old bangers!

So there you have it - the present registration tax system has ensured that Malta becomes a dumping ground for old cars.