Super cars, SUVs and registration tax
The Finance Minister has said that the new car registration tax will "shift" the current (unfair) tax regime to a new, greener "polluter pays" system. He also said he'd prefer if things remained as they are, throwing doubts about the extent to which he cares for the environment.
A lot of people think that those ugly hybrids, with narrow tyres and box-like designs, are going to save the planet. Others recommend using cars which lack creature comforts and, therefore, waste less fuel, so as to harm the planet a little less.
Being a car enthusiast from an early age, neither common family cars nor boxish hybrids have ever seemed to appeal to me. I have always preferred something well kept with a nippy engine, which I could take out for a spin on a Sunday morning. Alas, those saviours of the environment are trying to condemn me and others like me for destroying the environment.
So we are contributing to a little more damage than we're supposed to, but now that we are going to get the polluter-pays policy, what will happen? Compare my nippy car with the gas guzzling SUV belonging to a businessman's wife. Both are polluters. But wait, how often do you see super cars or 200-horsepower coupés in the morning rush? Rarely or not at all. How many mothers, safely driving their children to their private school in their huge SUV, do you see? Lots!
Will the minister, therefore, please explain whether we will continue to face the same form of discrimination as we do today? If I were to import a two-litre car, which would cost me say €2,650, I'd have to pay a minimum of €9,783 and an added 18 per cent Vat on this amount, even if I managed to persuade the owner to give me the car for free.
I hope the minister notices that there are lots of car enthusiasts out there, who are being deprived of their dreams.
It is true that our cars are a little less green than modern city cars, but they are hardly used, only when the weather is right, and unlike normal everyday cars, being our own pride and joy, we make sure they are highly maintained.
So if the polluter pays principle is introduced, I sincerely hope that it is precisely that - the real polluter pays and it won't be another case of the government conveniently drawing a line when there is a way of increasing revenue.
17 Comments
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I.Cilia
Jul 13th 2008, 09:12
@ Shaun Camilleri
your putting down of SUV's is not entirely Logical... SUV 's might have a purpose, they are able to carry a number of people and sizeable load in comfort, they are ideal for certain roads in malta, true they pollute but not much more (if at all) then a decent sized saloon..
Your type of vehicle is there for not much purpose in Malta apart from being enjoyed by you which I of course respect entirely but lambasting other vehicles does not make much sense
@Ramon Cachia...
pretty decent article I must say... apart from one aspect which to me makes the whole article a bit redundant... you have compared a car which is present in Malta against an SUV which is one of the US biggest models,(also used by the secret service) and which is minimally represented in Malta (if at all). Please compare like with like and go take a model which is popular in Malta and you will find that the difference is not as big as you are making it...
Shaun Camilleri
Jun 16th 2008, 19:58
Joe
The average 12-14 year old Japanese Supercar will set you back a reasonable €12,000. I will quote the ADT website
"Exceeding 2500cc but not exceeding 3000cc 75%, but not less then € 19,566
( LM 8,400 )"
Which on top of that we have to pay 18% Vat on registration, insurance and freight cost another minimum of €3,521
Can you do the math? €22,000+ taxes €12,000 vehicle.
So much of EFA shouting Full EU Membership, so we will be equal to our european cousins. And so much for Gonzi boasting just days before the general election that its not just the VAT will be removed but the whole system will be revised.
I know of a very good maltese phrase which fits exactly in my problem.
"Bejn il-paroli u il-fatti, hemm il-bahar jikkumbatti!"
Joseph W. Galea
Jun 15th 2008, 23:51
But unfortunately for you Shaun, there is no category for " Car used on Sundays, when it does not rain, when I feel like going through the hassle of going to the garage" therefore if you register your car, you pay the going rate. Why should they have a special category for you?
The only organizations I know who charge less for limited miles driven, are insurance companies, and not in all countries.
Now, if your car is an antique, you should register it as such, if is is a normal car, I cannot see where you should get preferential treatment.
I own 3 cars and I pay for all of them even though one is 14 years old and has only 21k km on it. I still pay full registration for it. I have the option of not registering.
Shaun Camilleri
Jun 15th 2008, 10:04
Joseph
You're missing the whole point. What I'm trying to point out that it is unfair to charge by cubic capacity/horsepower. My car is only out on Sundays, also when the weather is good and whenever I feel like going through the hassle of going to the garage bla bla bla.
So yes there should be a category where cars with limited mileage pay less (similar to the vintage cars) Apart from the fact that vintage cars cannot be used on weekdays, and If my other car breaks down I'll have to use my 'Sunday' car for an errand!
Joseph Galea
Jun 15th 2008, 08:03
Waht should be done is to charge registration for each car by horse power, age and cost including taxes. This would apply to all cars/SUVs/trucks etc, including hybrids.
Charging registration by km/miles driven is a farce because one can always disconnect the speedometer
Shaun Camilleri
Jun 14th 2008, 23:31
Kelly,
Sorry If i got a bit personal,but you got me carried away. I have loved cars from an age as early that I could barely speak in sentences. For some its considered a hobby. Others of the sort consider it a passion! So whatever happens, the love for cars will always remain!
And yes I agree that we agree on disagreeing. There will ever be no way of us agreeing, alas your argument started deviating a bit from your first post!
Liam kelly
Jun 14th 2008, 23:18
Shaun,
First of all please dont get personal on this matter...the comment that i lack common sence is a bit uncalled for.
Shaun, at no point did i even mention hybrids either, i know next to nothing about them, apart from the fact that fundamentally they still have a combustion engine...so they can't be all that great...so on that note i agree with you that they are not the answer.
My views on the environment are very different from this; i believe that every one of us should take personal responsibility for our actions, while businesses corporate responsibility and recognise the fact that our actions are affecting the environment, most obviously through CO2 contributing to an a greenhouse effect in retaining heat within the planet.
Everything we do has a positive and a negative aspect to it; if for example i choose to take the bus on the one hand i might save quite a bit of money but on the other hand ill probably never turn up at my intended destination, unfortunatly shaun, this also applies to cars in terms of its CO2 impact on the environment.
Shall we agree to disagree on the matter shaun! bonswa
Shaun Camilleri
Jun 14th 2008, 22:05
2/2
Kelly, heres some advice. Go drive your children/mates in your ecological economical city supermini, and keep feeling happy about how much you care about the planet...and also how many gears you'll be changing when you come to a hill. On the other hand i'll be pushing down the throttle and loving the sound of the tyres screeching while the wheels spin, and I won't feel guilty about the ecological damage I'll be doing since there's a lot of people who are opting to save the planet!
Shaun Camilleri
Jun 14th 2008, 22:05
Liam You are managing to impress me by each and every message. For heaven's sake go look up the word HOBBY in a dictionary...maybe u'd get my point. And as a matter of fact yest, I don't give about the environment and you know why? Because nobody seems to. This theory which people with lack of common sense such as yourself are basing their arguments on - that hybrids will now be coming in a blue vest with an S on their chest just like superman, to save the planet is completely wrong. How much energy is used to make a new car.....you surely won't know. You also won't know about the damage the acid does whenever it is spilled in an accident. And speaking of the environment, frankly you're making me think that you make sure that all the cosmetics you buy are not tested on animals...yer right. And yes I LOVE to pollute....coz i'm not brainwashed with this global warming issue. Coming to think of it, the govt should issue a tax on bbq's because they are also polluters right?
Liam Kelly
Jun 14th 2008, 19:24
Shaun,
If im not mistaken it was you yourself who brought up the 'environmental bull' by admitting that your damaging the environment more than your supposed to...so why not first of all lets just cut the crap and get one thing crystal clear here...you have absolutly no interest or concern for taking responsibility for your pollution and are only concerned about your own selfish desire to drive a car round the island for no reason whatsoever....case closed there.
Secondly, yes i know how much a plane emits as well as a power station...but you are only using that as a convienient excuse to try and justify your dirty little hobby., Based on that mindset im just going to take all my air conditioners outside and turn them on full blast all evening....ohh but thats ok....since that factory down the street produces more CO2 than me so that makes it ok doesnt it? Dont make me laugh.
Shaun Camilleri
Jun 14th 2008, 16:19
liam
The government is NOT coming up with any initiatives. As from what I'm seeing he is coming up with the same old PN ARROGANCE that we have seen for ages, taking a little break during the electoral rally. And just for you to know, no I have not had it easy for far too long. I paid three times the value the car should actually cost due to this crap!and In 3 years I didn't even cover 3000 miles. Hows that for figures? And would you all please cut the enviornment bull? What about the lousy power station in Marsa.....I bet thats state of the art too right? You know how much co2 a plane emmits Per Head on a journey Malta-manchester-malta? more than 600kilograms!!! So if you wanna save the planet go buy a hybrid and keep your thoughts to yourself. And if u wanna defend the 'credible' government.....go do your homework first!!
laurie smith
Jun 14th 2008, 15:01
The only slution for Malta is for the government to milk the private motorist as much as possible to help pay its debt. Where would one take a car for a spin, what a joke.
Ramon Casha
Jun 14th 2008, 14:19
Check out this article about taxation and SUVs:
http://www.espresso.com.mt/index.php?option=com_content&task=view&id=488&Itemid=26
Ninette Zammit
Jun 14th 2008, 13:59
I am one of those people who own an SUV. I would like to point out that this is not my every day car. I barely drive 1000 km a year in it. But the reason we bought it is that we like to drive overland every year and this comes to about another 8 or 10 thousand kms a year. So how is the government going to tax us on our yearly mileage? I use the car only about 2 or 3 times a month. To tell the truth, I do not see a straightforward solution to the problem. There are always those who will gain, and those who will suffer.
Owen Sant' Angelo
Jun 14th 2008, 11:33
I find this contribution very interesting and agree that the new tax will create problems.
The ideal situation would be to 'bill' cars according to the pollution caused. So for example, AFTER the year is up, the competent authority calculates the engine capacity vs. the actual number of miles driven. Or something like that. Obviously commercial vehicles would have special rates.
K.Vassallo
Jun 14th 2008, 11:25
Let me tell you what is going to happen. The registration tax is going to be slashed giving a false sense of happiness to all that they now can buy cars at much cheaper prices. In its stead a yearly tax will be introduced, efffectively doubling in price every year. By year 6, it would be of more benefit to fork out thousands for a new car than pay the tax for the 6 year old, perfectly working car. If you can afford to buy a car every few years, so far so good. For the majority of the rest ..we suck it. That is why the finance minister is not very much in favour, because this is going to create a huge problem which most people are not even seeing. Most people are just seeing that the initial price will go down and are not realising what is going to hit them 5 or so years after.
liam kelly
Jun 14th 2008, 10:47
Shaun,
You take your opportunity to criticize the governments new initiative on registration tax...yet you fail to provide any solution or alternative whatsoever.
How can the government tax a car by usage effectively? i've been trying to figure out a way but so far no good...the only solution i could come up with would be by taking the milage figure when the tax disc is due for re-newal and charging them by that....any other ideas?
The harsh truth Shaun is that you SHOULD be paying for the damage your doing to our environment, you can complain all you want about it but you need to take responsibility for your damage and pay for it...you've had it easy for far too long now.
It seems your not in the slightest bit concerned for the environment or your childrens future; youre only happy if you can speed around in circles in your car reving the engine so you can feel good about yourselves... i believe one could apply the saying regarding seeing further than the length of ones nose.