More anomalies in vehicle taxation (1)

Tonio Fenech seems to dress up the vehicle registration reform as a green move rather than a financial one, but a few questions come to mind and it would be nice if they could be answered.

Firstly, why were people told to put their mind at rest and go ahead in purchasing a car this year when Maltese registered cars were also going to undergo a drastic change in road tax? People might have opted for a smaller car had they known things were going to change. Why are people who have already paid more than enough in registration tax made to pay again in higher road tax to make up for the lower registration tax in 2009?

The government has decided to use age and cubic capacity as deciding factors on how much Annual Circulation Tax is paid per year rather than CO2 emissions from our VRT. The "polluters pay" principle is therefore replaced by "older cars" pay.

Here are some examples;

- A working class man owning a 1.9ltr diesel engine family car manufactured in 1990 has to pay €67 annually more than a man owning a new 8.0ltr V12 super car or a massive V8 SUV.

- A specific Japanese sports car with a rotary Wankel engine is registered as 1300cc yet has C02 emission levels higher than a 6000cc piston engine and yet is taxed less than a 1500cc family car

If there was any concern towards the environment, why was there an increase in annual tax on motorbikes by more than 50 per cent on most bikes rather than encouraging people to use them?

Why is an old car with a modern engine categorised according to the age of the car not the engine? Isn't it the engine that pollutes?

Why is there a small category from 1449cc to 1500cc when it comes to road tax? Why not go from 1300cc to 1500cc? Maybe because there are many cars that fit in this category and they will have to fork out between €15 and €44 extra per year. Is there a technical explanation or is it just a sneaky move?

How come the registration value of used vehicles is taken from similar vehicles already registered here in Malta? The price in Malta will obviously be a lot higher than in any other EU country due to our high registration tax + VAT + shipping . So now we will be paying registration on the price of an already registered vehicle. A typical example: A car which is bought for €2,000 in the UK costs about €8,000 registered here in Malta. (Don't take my word. Use the internet). So the registration value of the car is four times higher and the amount due will be calculated on that. 400 per cent higher. Very fair.

The system seems to benefit people intending to buy small cars. What about a couple with two children and a baby? Should they buy a two-seater micro car? Is buying a 1500cc car a luxury for these people? What about people who cannot afford a new car? What about people who have a classic car and only use it a few times a year? Classic cars are part of Malta's heritage. The owners often organise charitable events and enjoy showing their cars to locals and tourists. These people keep their pristine cars in their private garage and are not taking up any of our space or air. To make matters worse, there is also a fee on garaging a car now too.

One final question. The reform is described as the first phase. Is there more to come? Should people still not buy cars and wait for budget 2010?