Labour highlights uncertainty in car market

The Labour Party spokesman for the economy and the self-employed, Gavin Gulia, said Finance Minister Tonio Fenech was insisting on a plan proposed in the pre-budget document to reform taxation on vehicle registration by giving tax credits to anyone buying a car under the present taxation system.

Dr Gulia said this was the third time in recent months that the government was promising measures to counter market instability prevailing at the moment.

But, he added, the public was not impressed by the promises being made by the government because it then failed to implement them. In the meantime, business was suffering the consequences.

Dr Gulia said that it was not just the opposition that was speaking about the uncertainty but also the car importers' association, which had asked Mr Fenech to announce the details of the reform on the vehicle registration tax immediately without waiting for the budget. Even the Chamber of Small and Medium Enterprises - GRTU was complaining about this delay, he said.

While the government was going slow with the excuse that studies had to be carried out, every day that passed was causing more damage to businesses that operate directly or indirectly in this market.

The tax credits being proposed by the government would not have a positive effect, he argued.