Owner complains of double taxation on imported car

Mary Cordina

Nov 14th 2008, 16:22

Dear S Camilleri,

Good idea of yours.I too think it's a good idea. Just that your irony seems a bit off course,I'm sure that 'Il Partit tal Haddiema' would be only to happy for every worker to be able to buy a Ferrari(forgetting for one moment global warming etc). The idea is for everyone to better himself given a level playing field.I think that's a noble cause,I'm surprised you don't seem to think likewise:)

Philip Paris

Nov 14th 2008, 15:01

And you wonder why cars get dumped in the sea.

S. Camilleri

Nov 14th 2008, 14:55

Keep it up Stephen.
Recently Joseph Muscat mentioned that MLP will be taking up the issue of VAT on registration. How about assisting Mr.Grech here to establish a legal precendent!? Even though having "Il-Partit ta' l-Haddiema" assisting a Ferrari owner may seem a bit of a contradiction :-)

A Genovese

Nov 14th 2008, 06:37

As a returned migrant I imported my car from abroad,I paid my dues to Customs and ADT in order to obtain Maltese number plates. Recently due to the age of my vehicle I decided to sell it and buy a less powerful car,again I paid Customs a sum on money and cheerfully went off to ADT to pay what I thought was a small sum to obtain a new set of number plates to enable me to sell it on the local maket. I was then told that I would have to pay E3.500 when the resale value of my car is around E1200.

The consequence of this is that I am stuck with a car I am not allowed to sell and will now have to pay a license fee of approx E350 for the privilege. Something is seriously wrong somewhere and probably illegal. Short of taking expensive and time consuming legal action I will have to lump it and drive a petrol guzzling car till it falls to pieces damaging the enviorment along the way.Justice.what Justice?

charles marsh

Nov 13th 2008, 16:21

@ Karl Abela
Ilkhom 20 sena fil-gvern xjaħtu hemm. Miskom tistħu, dejjem l-istess storja. Veru ma fadlilkhomx argumenti..

Frank Borg

Nov 13th 2008, 14:44

A friend of mine, who has a dual citizenship and and is married to a local and lives in Malta, recently bought a luxury car from the U.K. When he enquired how much he must pay on registration tax here, the bill came out to 26,670 euros. Instead, he registered the car in Italy since he retained his Italian citizenship, and all he had to pay was 800 euros! Aren't we in the same European Union as Italy is?? Why is it that an Italian citizen who buys a car from another EU Country pays 800 euros whilst we, although we're supposed to be Europeans just as much as the Italians, has to pay 26,000 euros more on the same car? If this isn't institutionalised fraud, then what is? Good luck Stephen, it's about time somebody contests this rediculous system.

Anna Farrugia

Nov 13th 2008, 12:26

I wrote to ADT to find out if there has been any change in the law for car registration of EU Members settling in Malta and importing their personal car (previously owned for over six months) which is not taxible and certainly a personal effect according to EU directives.
Their reply

'Although it is true that there is a directive (Directive 83/183/EEC) which grants tax exemptions to individuals changing their residence from one Member State to another,including the prohibition of motor vehicle registration tax . The European Court of Justice has ruled, in several cases (including Cases C-387/01 Weigel, C-365/02 Lindfors and C-138/04 Commission v Denmark) that this tax exemption does not apply.'

We do not have the details of the cases listed above - I would possible understand if the importation of the car was made for resale or any other business purpose but it is unacceptable to have to pay such extortionate amounts when there is a clear cut EU Directive stating the a personal car previously owned for more that six months cannot be tax in any shape or form and the only taxes acceptable would be annual charges such as road tax. Good luck Stephen!

F.bartolo F.bartolo

Nov 13th 2008, 11:44

@Alan Cox, yes mate with a name like yours (no disrepect ment) must be a foreigner, as you say a country has to collect taxes to maintain its expenditure ofcurse you are right, but this government is not worried we got Foreigners residing here to do that for us and not forgettng the tourists ofcourse...Keep the coming as we say,no problem..we just love the smell of money.

alan cox

Nov 13th 2008, 07:45

What Labour has done in the past should be like a mirror on the wall for all to see and never be forgotten. Having said that one should bear in mind that it is now history. It´s about time the goverment gets it s act together re taxes .They SHOULD be well thought off before legislation. It´s seems there is bad advisers somewhere at the office. On the other hand a country has collect taxes to mantain it´s expenditure on keeping the social ,envoirmental and infra structure. It´s got to come from somewhere.

Robert Cassar

Nov 13th 2008, 03:30

We are a full EU member however our right for freedom of assets is being violated. Can someone from Brussels help us out? Our government is treating us like 2nd class citizens. This is our right and we demand it.

Steve Rogers

Nov 12th 2008, 22:58

Why is it PN sympathizers try to cover up faults by bringing up the past? If Labour was so bad why continue in their ways? Two wrongs do not make a right. PN reinstated Malta's application after it was frozen thus reversing a Labour move, why didn't it do it to other things?

And if you are going to marry someone, you do so without any intentions of cheating on him/her after the marriage. So why did we join the EU to break all these rules and live constantly under the threats of infringement procedures?

I would expect a Labour government to act this way and constantly go against the EU, but this is coming from a PN government - a government who sold to Malta the benefits in joining the EU. I do not expect it to break the rules it knew it had to adopt blindly but to negotiation new laws, to be introduced, in the numerous halls in Brussels - which it is doing so poorly.

John Borg

Nov 12th 2008, 21:31

@ Karl Abela
Registration Tax on cars was introduced in 1993 to replace a major part of duty applied on imported vehicles. It was then revised in 1995 with the introduction of VAT. I don't know who was in government in 1993!!!!!!

J Cassar castaldi

Nov 12th 2008, 21:28

Prosit Stephen Grech.Hope that you will get it right.

@ karl abela
You do not have any idea as how things stand. Thus I can understand why you voted PN

J. Borg

Nov 12th 2008, 20:56

Tax Compliance Unit.....hello
I trust you can check how certain cars are financed - and whether the income reported by the owners of such luxery vessels (cars/boats) justifies such expense

Robert Cuschieri

Nov 12th 2008, 20:36

Good luck. This is going to be interesting. Will be a big blow for the government and a victory for Mr Citizen.

James A. Tyrrell

Nov 12th 2008, 19:31

I wish Stephen all the best in his complaint. This stupid tax is obviously against EU law and should be scrapped immediately.

Having said that and speaking as someone who has been lucky enough to have had the chance to drive several Ferrari's over the years including an F40 which was VERY NICE, why would anyone want one of these in Malta? Given the state of most of the roads I've driven on something with a greater ground clearance would make more sense!

Ch. Harris

Nov 12th 2008, 19:15

*****Congratulations ***** for Mr.Stephen Grech from myself and co. and no doubt many many more , for having the guts to take this Malta Transport Authority all the way to the cleaners, wish others will take note and follow suit for being conned left right & center. Good on you Sir you are what we call a man with guts . 3 cheers and well done.When i mentioned What the maltese governments intention are when importing a 2nd hand family car from the UK and other eu countries, i don't think i would Like to repeat their reaction cause i'm sure the Times most definitely won't print it. All i can say is that i am proud to be British and we do things different and in a proper just way for everyone concerned no matter who they are.

John Carmel Navarro

Nov 12th 2008, 19:15

It's high time that the Government sorts this problem out, I myself was involved in a similar situation last year, as a result of being misinformed by the Malta High Commission in London. As a returning migrant I brought my own vehicle which I had owned for over four years to Malta. I discovered that I was liable to pay in between LM3000 - LM6000 on a vehicle that was over four years old with a street value in UK of £2500. After being forced to keep my vehicle off the road for over six months (some freedom of movement within EU!) the matter was resolved when I was issued with TFI plates which now means that it pays me to run my vehicle into the ground as If I try to sell it I am liable for the hefty tax.

James Fenech

Nov 12th 2008, 19:11

@ William Sciberras

I am pretty sure Stephen did his home work before he bought the car, its not as if he is not paying the double taxation. He's is flighting back against what he thinks is unjust.

Just because the government chooses to do something which appears to be illegal according to many ppl does not mean you cannot or shouldn't' fight it.


Its amusing to see ppl who defend PM or MLP at all costs and blame the other party. Its a pity they don't realise that many times either party in government just plays around with Taxes calculators. They always take your money. At the end, the money should come back to us the ppl, but do we get value for our money?

Its those ppl who allow the government to become arrogant.

Hicking up registrations/licenses whilst hiding behind a polluter tax is wrong
Creating VRT whilst we have shabby roads is wrong.
Double taxation is simply wrong. Soon we wil see if its realy illegal


I know life isnt always right and fair. but what is illegal can be stopped

Paul Smith

Nov 12th 2008, 18:04

It is clearly illegal and the Maltese government should stop breaking EU law. If you go on a shopping trip to London, does the gov re-tax you on what you brought? NO!

Gonzi PN stop breaking the law, us in other countries will raise the issue of Malta Gov braking European law with our very own MEP's.

Here in the UK we send over 1 billion pounds sterling to new accession states via Brussels, if i bring my own family car and come and live in Malta, why should i be double taxed?

simply illegal whether it a Ferrari or a fiat uno!!!!

C. Scerri

Nov 12th 2008, 17:35

Brian Grech - In all Schengen area you are not required to show any passports - this has been on since Decmber 2007 (by sea) and March 2008 (by air). I can vouch for this. If on the other hand you travel only to the UK - then everyone has to show his passport or a legal ID cards (most Maltese ID cards are not legal as they need to renewed).

As for Stephen Gatt - I wish him good luck as I believe that the law, even as amended, goes against the EU principle of free movement .

Andrew Said

Nov 12th 2008, 17:21

Haliex ma tmurx tkellem xi ministru, qabel ma ttajjar xi balla liri ohra??Ghidli, nahseb tkun trid taqlalu xi haga? Ara siehbi, milli jidher, kull fejn taqta johrog id-demm, allura issa, fejn qlejt bajda ghaqli tnejn u darba ohra ghamel naqra 'homework' qabel ma tfattara.

lgalea

Nov 12th 2008, 17:16

Good luck. Everyone should start doing so whenever the Gonzipn Governemnt is infringing their rights.

Karl Abela
You have the gall to criticize Labour when your PN Governments have been in power for the last 20 years and not only did nothing to remove it, but were threatened by the eu in order to do something botched up to remove it!

Go on everyone. Stand up for your rights against the arrogant and incompetent Gonzipn Government. Sue, Sue, Sue

Tim Ripard

Nov 12th 2008, 17:10

Karl Abela, after 19 years of PN government you can hardly blame the MLP for this. If they were wrong, so are the PN. I'm a (rather reluctant) PN sympathiser, but let's call a spade a spade. It's true that Lorry made a fortune on TVs (they used to cost around LM300 in Labour days) but that's nothing to do with cars.
It's simply a scandal that you can buy a car abroad for almost half the price it costs in Malta and a bigger scandal that should you import your own, used car to Malta from another EU country you pay registration tax and an UNBELIEVABLE scandal that VAT is applied to this tax.

F J Brincat

Nov 12th 2008, 17:10

I just love people like Karl Abela who say things like “you have Labour to thank for this tax or that tax”

Perhaps in your euphoria Mr Abela, you have failed to notice that PN has been in government for 18 years, so had they wanted or had they cared, they could have removed a good number of taxes. But they didn’t. Why not? There was plenty of time to revise.

Possibly because no government is prepared to let go of the money once it gets its hands on it. And if it ever does let go with one hand, the government can and will take with the other. It always has been like that, be it PN or MLP.

martin saliba

Nov 12th 2008, 16:58

@william sciberras

Sour grapes!

d farrugia

Nov 12th 2008, 16:54

@ karl abela
what labour did int the past has nothing to do with this issue!! now we are in the EU and if so we have to abide by its rules!! this is like the VAT on new vehicles which was now finally removed, after 4 years of stolen money from this tax by the government!

MICHAEL FENECH

Nov 12th 2008, 16:49

@ Karl Abela

At doesn't say much for all the PN governments before we joined the EU.

Charles.j.Schembri

Nov 12th 2008, 16:28

very unfair government for sure....go for it Stephen........

Karl Abela

Nov 12th 2008, 16:23

MALTA LABOUR PARTY introduced the tax on registration many years ago and the law was never revised.

You have Labour to thank for this because they wanted to protect the local agents...Labour used to do what ever they wished to do. The consumer had no protection whatsover. We were subjected to unfair taxes left right and centre on 'luxury' items such as TV's and computers and we couldnt do anything about it. Whoever spoke up would end without a job the following morning.

Then you get an Austrian artist by the name of Clemens Hasengschwandtner who has the cheek to speak on our behalf about the EU. For his information, we have turned into a civilized country since we have joined the EU. We finally have rules, regulations and funds that are bringing the country in order. Its a far better deal than the Partership deal that labour suggested.

I.Scicluna

Nov 12th 2008, 16:20

Just in case readers missed this:

http://www.timesofmalta.com/articles/view/20081110/local/mlp-to-campaign-for-refund-of-vat-on-registration-tax/

QUOTE:
Labour leader Joseph Muscat said this evening that unless people who paid VAT on their vehicle registration tax were given their money back, the MLP would launch a campaign for that purpose.
Dr Muscat said when speaking in Parliament that the imposition of VAT on registration tax had been declared illegal by the European Court, but the government had not yet said whether people would be refunded. Nor was any mention made in the budget.
Speaking in his reaction to the budget speech, Dr Muscat said the government had made “a mess” of the new vehicle registration tax.
While government income from registration tax would drop by €7.7 million, licences had been revised so that government revenue would actually be €15.5 million. The worst off would be those who could not afford to buy a new car.
And the licence of an eight year old medium sized car would cost as much as a yacht licence, he said.
UNQUOTE

Brian grech

Nov 12th 2008, 16:10

Should'nt the EU be one big country? If you buy a car in England, or Italy or wherever, aren't you supposed to pay registration from where you buy it in the first place? Why is it if you bring a car to Malta you have to pay registration and to top it all up VAT as well? VAT is paid once when the car is bought new. Malta is the only place in the EU that you pay registration for a second hand car. A friend of mine from the UK who moved to spain didn't pay any registration for his 2 cars.
This is like the passport law they told us about. We where told that there is no need for passports but wherever we go in the EU we still have to show our passports. PROMISES, PROMISES, PROMISES!!!

william sciberras

Nov 12th 2008, 16:07

boo ho ho, did the tax man treat you unfairly...

you should have at least had a look at the ADT website BEFORE you bought the car.It may be unfair, illegal and everything else but it does indicate what taxes you have to pay to import a new or second hand car to malta.

So blame it on the ADT if you want to but i am afraid it is really your fault.

Now i will just sit back and wait for all the abuse.........

Stephen Borg

Nov 12th 2008, 15:56

Phil,,,, have you ever seen a Ferrari that's not 'nice'???????????

My 12 year old Fiat is not nice!!

Clemens Hasengschwandtner

Nov 12th 2008, 15:53

Face it - the Maltese Authorities do a lot of things which are actually against EU law but nobody really is willing to fight it out. Gets time that someone has the guts and resources to do something about it.

So far we have only all the disadvantages the EU brought us - lot's of new rules and regulations and not many advantages. Gets time that we get cheap cars, new roads, better infrastructure as well - not just more taxes and more hassle.

Prosit Mr. Grech, keep it up and don't give up. The law is on your side - just the Maltese government isn't.

I.Scicluna

Nov 12th 2008, 15:38

@PPress

Whether it is a nice car or not is besides the point. I am in the same situation even if the car is different. As far as I know, EU law already ruled that VAT on Registration Tax is illegal. Moreover, whether the VAT paid is EUR1.00 or EUR1000.00 is irrelevant; it is a point of Law as well as principle.

I wish Mr Grech all the luck to solve this matter in the only way it should end; full refund!

P.S.

ALL Ferraris are, by definition, NICE :-)

Phil Press

Nov 12th 2008, 15:24

Must be a nice car.