Annual circulation tax to be introduced
The vehicle registration tax regime has been overhauled with the tax on new vehicles to be based on the value, CO2, particulate matter, age and length of the vehicle.
Imported second-hand cars will be taxed on market value.
VAT on registration tax is being abolished while a minimal tax on imports from the European Economic Zone and non-EU member states is being introduced. There will be extra weighting for diesel cars with particulate matter higher than 5.0mg/km.
Vehicles will be subject to an annual circulation tax based on emissions and age.
As far as present fleets go, the first part of the reform affecting M1, self-drive, garage-hire cars and motorcycles, will come into force with a revision of the annual circulation tax based on capacity and age.
Cars bought between January 1 and end of December may opt for the new system. Any registration tax refund will be credited against payment of the annual licence.
The new system favours smaller vehicles with low-level emissions and cleaner technologies as well as motorcycles.
The reform is based on the polluter-pays principle and on congestion created. It will be addressed in two phases: The first, to come into force on January 1, would include private vehicles for the carriage of passengers and motorcycles. Commercial vehicles would then follow. The price of second-hand vehicles will be determined by local market conditions.
The government will be appointing an Appeals Board to hear and decide on cases where owners do not agree with registration tax valuations. There would still be a minimum tax for vehicles manufactured within a five-year-period from the date of registration in Malta and which are not of EU or European Economic Area origin.
Congestion is also another important factor in the proposed new system. Longer cars increase congestion time and need bigger parking spaces. Therefore, smaller cars should be fiscally preferred and so the purchase of smaller vehicles will be rewarded.
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J. Apap
Nov 12th 2008, 10:14
It would be better if the tax was based on number of kilometres than years. Tax should be based on distance covered by the car. Longer distances means more pollution.
Polluter pays principle. There should be different criteria for commercial companies and public transport.
Schembri Ray
Nov 6th 2008, 20:34
The only purpose to increase prices is to collect more money and nothing else. You cannot charge to a section only, and other sectors are not charged equally. I'm sure that commertial vehicles pollute the air more than family used cars. It's a farce not to charge them on equal basis. Secondly why the government lowered the price of alcohol. Doesn't he know that all the whisky is imported. Last thing is the issue of bicycles. Where are the bicycle lanes? When someone from the parliament is going to give us an example? One thing the government should have done in this budget i.e to increase the size of Mater Dei with the measures he took.
Kevin Cassar
Nov 6th 2008, 19:56
@ Mark Galea
It would still not be ecologically correct to charge on power rather than by cubic capacity. Modern cars with power pollute less than old cars with less power. In order to be truly a green solution the charge should be on Co2 emissions, also taking into account mileage. Co2 emission ratings by themselves are useless since I can have a car that produces 200g/km of Co2 and do 10000 km a year with it (total 2000KG) and would pollute less than one with a 100g/km that does 30000km (total 3000KG). If the Government had used this concept it would be an incentive to use public transport or walk to short distances instead of going by car. As it stands, once a person has paid his license, he has already been penalized so he couldn't care less about reducing the carbon footprint.
Dr Francis Saliba
Nov 6th 2008, 19:40
It is not true that the new measures are "based on the polluter pays" principle. If this were so it would be correlated to the emission of noxious substances like particulate matter and carbon dioxide concentrations in the exhaust, not also on the age of the car. In the case of infrequent users, such as pensioners, their cars would remain poor polluters for decades.
Intelligent people would spot immediately that is an underhanded way to impose an artificial in-built early obsolescence forcing premature replacement of perfectly good non-polluting cars. The only beneficiaries will be the already rich importers of motor vehicles at the expense of the long-suffering driving public and creating more scrap.
aidan mifsud
Nov 6th 2008, 19:21
It always amuses me how these "poor" maltese people who struggle to make ends meet because of the budget. Yet they talk about owning 2 cars and having to buy a new car every 7 years. It's the same as the poor young couples who can't afford to buy a house. Look out into the real world...your level of normality is way above how many people in wealthy countries are living...they rent apartments and take the bus! But of course that would be shameful for many maltese people.
Mark Galea
Nov 6th 2008, 16:29
Further to my earlier comment; Why has LPG never been allowed in this country? Engines run far smoother, considerably cleaner [less pollution] and wear less with it. It would cost the motorist approximately half of what petrol costs and being more efficient, it renders more mpg. The difference would be a slight decrease in accelleration, which I believe the majority would gladly accept in favour of decreased fuel costs. LPG is used in most European countries so why not in Malta? Is it because of the old [absolutely mistaken]notion that having a gas cylinder in the back is dangerous or is it simply that it renders less income to the exchequer?
Christopher Grech
Nov 6th 2008, 16:11
Politicians serve thier Corporate masters, the businesses. They discriminate between the general public and the businesses, the buses and trucks and the like. The latter are the largest pollutants.
So is this a matter of principal of who pollutes the most? Of course not! The disgusting old trucks, still get away with it, including government and private buses. It is two wieghts and two measures!
Furthermore, it is the owner of the construction trucks that are the best able financially to overhaul their vehicles, not the general public. They could at least recondition thier engines, and not emit white toxic fumes.
If the government is serious about promoting bicycles, a lick of paint showing a bicycle lane does not help, if this area is full of potholes and dangerous to pass by. Try it in our tunnels, you might get killed!
Perhaps the better tax, would be to tax hypocrisy!
Kevin Cassar
Nov 6th 2008, 15:08
If this was really a polluter pays tax, it would take into consideration the actual miles driven by the car. If I had a car whose emissions are 300g/km and I don't drive it for a whole year, my total Co2 emissions would be NIL!!! Yet with these new regulations I'd still pay much more than someone with a 100g/km who makes 10,000 km a year (1000KG of Co2). Oh and now we're also lending money to the Government at no interest. In order to get the extra registration I paid, I need to wait for 9 years. This is nothing but a revenue generating tax.
Maria Dolores Fenech
Nov 6th 2008, 15:05
@Mark Borg
Your comment says it all.
L-iktar li jdahhnu huma tal-linja imma huma exentati minn kollox. Forsi l-gvern beza' li jergghu johorgulu fuq strike. Illum ikolli nghid li dakinhar tal-linja ghamlu sew li waqfu lil gvern ghax issa dara jghaddi minn fuq kulhadd. Imma dawk kollha li qed igergru jmisshom ikunu irgiel u nisa u nhar il-Hadd imorru l-Belt jipprotestaw. Inkella il-gvern jibqa ghaddej qisu mhux hu. F'Marzu kellna l-mazz f'idejna u armejnieh, ma nergghux naghmlu l-istess zball.
U l-Unions, jekk vera jirraprezentaw lil haddiema ghandhom jinghaqdu flimkien ma' min qed juri Solidarjeta maghna li qed inbatu u naghmlu front wiehed.
M.Seager
Nov 6th 2008, 14:32
Lets put it another way.. those that cant afford new cars are forced to pay the inflated tax until they can afford one. In the mean time the money that one is trying to save for a new car is being eaten up by taxes. Its a no brainer. The rich get rich, poor get poorer..
We could go to the bank and get a loan but look and see where borrowing has brought the world today.. if you cant afford it the dont buy it !
Maybe an increase in road tax could be acceptable if our roads are too, thus cutting back on repairs neccessary to pass a VRT (which as soon as you have passed are not valid anymore as you have just hit another pot hole possibly damaging steering and suspension) but they are not.
Re fuel: The same car in Malta taken to mainland Europe runs cleaner on fuel there than it does here on local fuel.. answers on that one anyone please... maybe the parts per million of bad emmisions should be measured before using local fuel on imports . I wonder if those results would be published?
Mark Borg
Nov 6th 2008, 11:27
How much will buses pay?
JASON MALLIA
Nov 6th 2008, 11:16
These measures were "taken" to protect the "air we breath".
Unfortunately after this budget we cannot breath at all !!!!!!!
E. Azzopardi
Nov 6th 2008, 10:13
What does the picture above tell you? Total lack of discipline on our roads? And this we all know? Heq m'hemmx x' taghmel? U kemm hemm x'naghmlu!!!!!!!!!
A.Borg
Nov 6th 2008, 09:53
Govt introduced a 15% rebate on the purchase of bicycles as an incentive for the Maltese in order to start using bicycles instead of cars. That's good for the environment, but the authorities must keep in mind that if they want to copy other countries (on the use of bicycles), first of all they have to have bicycle lanes all over Malta. Also, in other countries, a typical example of persons travelling by bicycles use trains for long distances whereby they can carry their bicycle into the train and then cycle to work the few distance remaining from the station to the place of work or school. But this is not the case in Malta where the public transport is not equpped for carrying bicycles and the roads are not safe to cycle into, apart in the few remaining rural areas ....... would any Minister imagine himself cycling through Regional Road especially during the peak hours!!! We need better thinking for the common citizen rather than revenue thinking.
M Borg
Nov 6th 2008, 08:57
@ john pace
To add with your comment, looking at that picture, we can see lots of private 'small' cars, some commercial vechiles (vans, pickups, etc) and even construction vechiles.
Let's get to the point: I own a private van (glass van) with a 2.3L Diesel engine, which i use for family purposes. This vechile is very economical: considering that i use it daily and have quite some distance from home to work, i consume about Euro30 diesel weekly, when i used to consume Euro50 weekly with a smallercar with petrol engine (14cc) and when fuel was cheaper (doing approximately the same distance weekly). Now since i am polluting less the environment, the Govt has increased my registration tax by more than 100% (from Euro340 to Euro730 anually for the SAKE OF POLLUTION PAYS PRINCIPLE! Simultainiously, my neighbour who owns a PICK-UP as a private car, and my other neighbour who owns the same model as my own, but being commercial (ie panel van) pay less more since these are considered COMMERCIAL! Also the construction vechiles pay less more, also considered as commercial.
Who drafted the new regulations?????????!!!!!!!!!!
This discrepancy needs to be addressed MR GONZI.
Paul Agius
Nov 6th 2008, 08:32
A solution to the fuel problem is the water to gas kits which can make a car run partially on water. Visit http://www.watertogas.com or search Google for “water to gas.” I have fitted one on my Fiat some 4 months ago and estimate savings of about 20% in fuel costs.
Mark Galea
Nov 6th 2008, 06:40
Motoring in Malta has regularly been targeted as a form of revenue for the exchequer. In two consecutive budgets, just a few years ago, vehicle license more than doubled. Fuel costs have shot up. Spare parts costs have become exorbitant. Now we get this eco-tax. Why sould I be hit severely by this tax, when I drive around in a well maintained diesel engined family station wagon, when on the same roads we have a considerable number of compacts racing around with tweaked engines and with the use of alternative fuels [Nitro ;-)], who will probably pay less because size now matters. The tax should be on power output not cylinder capacity; a 2ltr SW should pay less than a two ltr sports car.
Is noise pollution being considered? Are road surface conditions going to be improved? Now that the price of oil has decreased, are fuel costs to remain the same? What about more rigid control on mark-up on cost of parts? Are we going to continue with the present state of affairs; what is being given to the motorist in return for the increased expenses?
johnpace
Nov 4th 2008, 21:34
they say a picture says a thousand words...and so it does....
take the pic published above....who would in his right senses drive a bicycle???
I wouldn't do it if it was given to me for free let alone at 15% discount!!!
Albert Bezzina
Nov 4th 2008, 21:15
The car taxation change has been brought about not because of the Maltese authorities' bona fede sudden conversion to green credentials - the old car tax system was after all claimed to have been created with the environment in mind - but because of non compliance with European law. VAT on registration tax will also be removed - because it is illegal to impose VAT on a tax. The information that has trickled out into public domain is still fragmented and incomplete. It is not possible yet to form an objective evaluation. The European Commission has encouraged the change of vehicle taxation to a system which takes into consideration CO2 emissions but at the same time advocating a change which remains revenue neutral to that country's Exchequer. My Impression is that the Government has drastically overshot the level of decency in not only making sure that the loss of VAT on registration tax is immediately recoverable from the raised road licence fees and the raised excise tax on fuels will make good for any loss of revenue from a reduced registration tax, but overall Gov. revenue may increase by as much as €15,000,000 above current car related revenue.
Clifford Davies
Nov 4th 2008, 21:02
On the whole we find this years budget quite harsh and most will find it difficult to cope with, on the other hand most Maltese and Gozitans tend to keep themselves POOR> but judging by their houses and the amount of properties they own and investments they can well afford to pay the extra increase in the cost of living., many a times people tell us not to give any help to some scruffy looking individuals begging us for change, and were informed that they actually have thousands stashed away, we even seen many locals in Gozo mostly farmers walking about without any shoes, yet they drive in big 4 wheelers, rent their best properties to us foreigners and they tend to live in a sh*ty hole is beyond our belief. However i don't think this extra revenue in paying extra road tax on bigger and heavier cars or 4 wheel drive is going to make much difference to them, they moan for a week or two but then its back to normal as before, but like anyone else they don't like to fork out & have their little moan same as in Britain and everywhere else. Be Happy*
Jannie Hartman
Nov 4th 2008, 19:55
Is investing in a new 2 wheel bike as in Bicycle and receiving was it 15% rebate or so going to work in Malta or Gozo>.without being a hazardous to drivers with a 4 wheel vehicle? i wonder because if thats the case then more money is needed to be invested to make special bicycle lanes special lanes as we have back home in the.........................................................................
Low Countries. Its a good idea and ofcourse enviremental friendly,No CO2 or Pollution and ofcourse a healthy excercise? but then again special Bic. Lanes are necessary so every bicker stick to his or her lane and not useing roads that are being used by drivers driving at a faster speed then they are causeing unnecessary accidents which are normally blamed on a 4 wheel car. Thats a thought.
Anthony Formosa
Nov 4th 2008, 19:12
I have two cars, one which I use for work and another for the weekend, therefore either one is garaged as I'm the only driver. Why do I have to pay road tax for both? in some EU countries only one set of reg plates are used which can be switched from one car to another, and the road tax is paid on the highest car value.
Benjamin Curmi
Nov 4th 2008, 17:30
Did by any chance hear any of our politicians say that they are changing their luxurious official cars to smaller ones the likes of Fiat Panda's or Renault Twingo's?
Benson Williams
Nov 4th 2008, 16:21
I don't want to be funny Ha!Ha! but looking at the Times picture above** is this what they are talking about cutting down on congestion.. looking at the middle bit in the picture it looks more like a 7 lane traffic or is this the way they drive in malta in a 2 lane traffic.. in that case why not get more of our eec money and improve the roads but widen them and increase lanes so everyone stick to their lane and not be a road Hog!.
l Galea
Nov 4th 2008, 16:11
Dr. Marco A. Ciliberti
As they say, there are lies, damned lies and statistics.
In our case, there are lies, damned lies and politicians
Ian Vella
Nov 4th 2008, 16:11
Before weighting down on diesel cars with a partticulate matter of more than 5.0mg/Km, I think that the Goverment and the Malta Standards should ensure that the fuel being sold is really up to EU standards. This applies especially to diesel fuel! It would be charming to see how the authorites are going to measure the emission from each and every vehicle, or are we going to use factory values? What about the older cars that are far from perfect. Or is the responsibilty going to be shouldered by the VRT stations, to measure the amount of particulate matter?
Mario Ciappara
Nov 4th 2008, 16:04
Thanks for assuring me that I am still intellectually sane. In fact I am in the same boat as Mr. Scerri and it suits me better to retain my two old small cars and juggle with both when needed, instead of buying a bigger new car, since as Dr. Marco A. Ciliberti well said I still pay less circulation tax. I was surprised to say the least when I saw the figures in the budget tables.
Congestion is best dealt with by introducing a good, reliable and efficient public transport and not by instigating the use of two cars instead of one big car through the introduction of a car length tax!
Politicians tend to focus more on satisfying their revenue hungry agendas instead of taking care of the environment!
Benson Williams
Nov 4th 2008, 16:04
what are these people talking about ? why can't they just follow other Europeans' example regarding buying or bring in a family car a second hand car or a new car , where are the incentives to do so?why can't they just follow other europeans' way of doing things instead of dreaming ways of making things difficult for every driver . These guys look intelligent on the box, but i'm not so sure they know what they are trying to put over. Has anyone got any ideas apart from introducing smaller and newer cars clean CO2 and shorter in length that wouldn't take 2 car space to park? whats this circulation tax in aid of?????? does anyone know? cause i don't?
Clifford Davies
Nov 4th 2008, 15:50
Can anyone make any head or tail out of this mambo jumbo vehicle tax business? I might be naive or lost the plot but i'm really baffled with science here and if anyone got a clue what the authorities are planning to do please put it in Layman's term thankyou verymuch> I thought our system was bad enough in the Uk, but boy the Maltese way of doing things takes the cherry on the cake. Why can't just say it's going to cost you more to bring your car over and if you own a longer car, well you might as well forget it or use one half at a time. I think it would be better for us to invest in the old maltese and gozitan system and that is ** A donkey(Mule) and cart system that way the only pollution we have on the road would recycle & usable for growing fruit and veg> what say you folks?
Dr. Marco A. Ciliberti
Nov 4th 2008, 14:43
The new tax regime for vehicles is baffling, to say the least !! If my understanding of the tables published are correct, new vehicles registered on the 1st January 2009 will be paying a higher rate of circulation tax than older vehicles registered before the 1st January 2009. The difference is not minimal either.
It takes politicians to come up with such idiosyncrasies. What's new ?
C. Scerri
Nov 4th 2008, 14:42
Mario - no I think that you have understood it pretty well - I had in mind to purchase a medium to large car (family of 5 and dog!) - now I shall opt to two small cars - and go out on a Sunday with both - I am sure that this way I shall be contributing in reducing my Carbon Footprint!!!
I really cannot understand the consultants that are behind all this!
M borg
Nov 4th 2008, 13:49
Yes it will still be better because most trips (at least 5) in an average worker's week are done to go to work not to take the whole family out (usually one or twice in the weekend for the average worker).
Hope this helps
Mark Abela
Nov 4th 2008, 12:56
What irriates me is that 3 years ago i paid almost Lm5000 in registration tax + the cost of the veichle for a used japanese car and now i also have to pay €493 circulation tax....And if i try to sell the car to buy a newer more efficient car i will not even get back half the price i bought it for...were are the cash incentives on used cars to scrap and buy new ones we see in other EU countries...As always the goverment takes and never gives back....MA
Mario Ciappara
Nov 4th 2008, 12:07
With the new car tax reform it pays a family to go out with two small cars rather than having one big family car. Maybe someone can enlighten me how this contributes to reduce congestion, parking space and pollution!
Maybe (hopefully) I have understood it wrongly.