Finance minister Tonio Fenech this afternoon reminded the Association of Car Importers that the government has committed itself to review the present motor vehicle registration and licensing system to one in which smaller, cleaner and newer vehicles will be fiscally preferred.

The minister in a statement said that those vehicles that have been registered on or after January 1 will have the option to migrate to the new system and any refund due on extra registration tax that would have been paid will be credited against the annual circulation fees.

"While the government acknowledges the fact that there is an expectation for the new system to be implemented at the earliest possible, any serious reform can only be presented after the necessary studies and consultations have been carried out," said Mr Fenech.

The government is now finalising the technical and legal aspects of the new system, including the valuation of imported used vehicles and the setting up of an IT structure that is expected to support the new system.

The draft of the new system will be presented to the stakeholders for any final reviews and will be presented in the budget speech.

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