Uncertainty over registration tax messing up car business
Uncertainty over the new car registration tax is messing up the car business by affecting sales negatively, according to Gavin Gulia and Joe Mizzi, Labour spokesmen for the economy and the self-employed and transport and resources respectively.
The fact that the government was dragging its feet over the removal of the registration tax was bringing about uncertainty, they said.
The government has been postponing the removal of the tax for months, extending the waiting time. This was, doubtlessly, responsible for the stagnation of the market.
Since it is thought that the tax removal would bring about a slide in the purchase price, the demand for vehicles has gone down drastically, they pointed out.
Many businesses have invested in buying cars but they remain stuck with their stock and are facing major financial problems. Related businesses such as mechanics are complaining about lack of work and loss of profits.
In a reaction, Finance Minister Tonio Fenech urged the MLP to analyse and give its reactions to government proposals and policies rather than coming up with baseless statements.
The spokesmen had clearly not bothered to look at the Pre-Budget Document 2009, which includes the framework of the new car registration system, he said.
The car registration reform could not be carried out overnight because part of the implementation included legal amendments.
The government wanted to put everyone's minds at rest that, while it wants to conclude the process in the fastest time possible, fiscal changes had to be carried out in a studied manner. On the other hand, because it understands the uncertainty that could exist on the market, it has given a guarantee that whoever buys a car under the current taxation system would be credit paid once the new system is introduced.
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mario mifsud
Jul 31st 2008, 13:41
Does the minister mean what he stated regarding refund? Is this the same refund he will give on our departure tax ? Yeah lets all go for a ride See you in 5 years time mates
Michael Ellul
Jul 31st 2008, 13:08
Giving refunds is not helping car sales. Let's face it if i'm willing to spend €20,000 on a car that will be reduced say to €15000 i'b prefer buying a better car with my original budget or keeping the money in my pockets rather then a credit with government that will take 20 years to settle as with this credit you can only pay the annual road fee. we cannot pay electricity bils or insurances or fuel with this credit so who will leave thousands of money in governments hands loosing intrests on them whilst paying the government for all other taxes. Don't just do things to close mouths do them right. A government is like a family father. Do you think this government on this issue is helping his kids?
vincent a galea
Jul 31st 2008, 12:39
Eh! Come on people!! Give the those responsible a break !! After all how long have we been waiting for a decision on the proposed car registration regime !!! Too long ?? !! Ah - well things take time, you know, and have a heart - it is really hot and humid at the moment - please dont rush them...., I repeat, have a heart, and it is only half days working now, please...
Now if you said let's have a trip to the moon, that would be quicker and easier! So please do have a heart......
Anthony Formosa
Jul 31st 2008, 12:21
The government must be is prepared to refund those who paid taxes on their new cars from the day we joined the EU. The Maltese people are paying unjustified taxes and nobody is protecting the consumer. When are we going to stop treating the Maltese people as a third class EU citizens? In some European countries, a person who owns two cars and drive only one, pays only for one road tax, the registration plate will be shared by both cars. Why we have to pay for both cars road taxes and insurance when one is not in use? Obviously the road tax and insurance will be paid on the highest value car.
Shaun Camilleri
Jul 31st 2008, 11:48
I have just gone through the pre-budget document. The only 3 facts are a choice between the old system and the new one. It will be based on emissions and car size. Does the minister say cars will be cheaper[highly unlikely], or more expensive? No. All he does is bragging about global warming, the government's revenues and statistics in the EU states, as for higher prices Malta is always on top, and as for vehicle average life.......22years when the average in the EU is 14.5years.
My thoughts on the Minister's comments - He is plainly being pathetic!!
Long Live the Morris Marina...with it's luzzulike sounding engine!!
Joseph Buhagiar
Jul 31st 2008, 11:33
The registration tax on a car that costs £10,000 from the uk is of approximately 10,000 euros including VAT. These values were given to me at the ADT offices some time ago so they are not a figment of my imagination. So this means that the government will give me a credit of 10,000 euros. Do you think any sane person will accept something like this? It is like lending 10,000 euros to the government interest free and use this money slowly to pay the road taxes. This money at the rate of taxing that is expected will last more than 20 years.
Come on, remove this tax because it is illegal. Don't keep on messing with people's earnings.
Ramon Casha
Jul 31st 2008, 10:13
Baseless statements? Is Tonio Fenech living on the same planet? Of course this uncertainty is hurting sales! I'd never dream of buying a car when there's the possibility that after a few months its price would plummet. People have learned not to trust the words and pre-budget documents. They'll wait for the facts to materialise.