Christian Peregin
Hybrid cars more expensive after budget
The Honda Civic hybrid emits 109 grams of CO2 per kilometre but only when engine is running.
The importers of Honda have stopped ordering hybrid cars after the budget's car tax reform made them costlier than vehicles in the same class that pollute more.
A spokesman for the company said the measures were "ridiculous" and showed the government did not understand the concept of hybrid cars.
Hybrids are powered by a combination of fuel and electricity but during traffic stops the engines switch to self-charging batteries, cutting the CO2 emissions completely.
A spokesman for the Finance Ministry said that while the government is analysing parts of the budget that had been "overlooked", this measure will only change once "proof" of the cars' effectiveness is produced.
The spokesman added that so far only 30 hybrid cars have been sold in Malta, a figure that was challenged by the Honda importer who said it had sold 36 alone in under a year and a half.
The government spokesman said the budget was not trying to discourage hybrids but wanted to ensure a streamlined non-discriminatory system of taxation. Since hybrids were previously given substantial tax cuts, the new prices make it seem as if they were purposely becoming more expensive. "The reason they are more expensive is because the technology is more expensive," he said.
However, the spokesman for the Honda importers said that is exactly why incentives needed to be launched to go green. "Now people will have to pay thousands of euros more to buy an eco-friendly car. It's just not worth it. So there's no point in importing them unless something changes," he said.
The importers of Toyota, which also produces a hybrid model, will continue supplying the car because, according to a spokesman, "there are still some people who are prepared to spend more for the environment".
But considering this was promoted as a "green budget", he had been expecting the government to give incentives rather than make hybrids more expensive.
"People are now rushing to buy the hybrids before the prices go up. They were led to believe the hybrids would become even cheaper than they were, not more expensive," the Toyota spokesman said.
The new road tax announced by the government in the budget was meant to penalise fuel-guzzling cars with high emissions. But the complex system also depends on the car's value and length.
Through this system, the government has brought about a situation where, contrary to what is happening around Europe, hybrids have become more expensive.
In a number of congested European cities, hybrids have been promoted through tax cuts and other benefits. In London, hybrid drivers do not have to pay the exorbitant congestion charges that everyone else has to pay. In fact, these cars have gained immense popularity around the world because they are eco-friendly, economical and better for public health.
When it comes to CO2, the Honda Civic hybrid emits 109 grams per kilometre but only when the engine is running. "When the car is idle you can put your mouth to the exhaust pipe and it will do you no harm, so, in practice, it emits much less than 109 grams, which is already low," the spokesman for Honda importers said.
As things stand, Honda's Civic hybrid is now about €5,000 more expensive than the standard Civic 1.8 litre petrol.
Similarly, at about 160 grams of CO2 per kilometre, the Toyota Auris 1.4 litre petrol is €10,000 cheaper than Toyota's hybrid Prius.
"The measures are simply not based on the polluter pays principle. It simply does not make sense," the Honda spokesman argued.
Honda is now trying to persuade the Association of Car Importers in Malta (ACIM) to change the government's mind over the position of hybrids.
But when contacted, ACIM secretary William Shaw refused to comment, saying only that untimely comments can damage the market.
He did not even confirm that the association would challenge the government's measures.
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Paul Caruana
Nov 23rd 2008, 18:56
Once the dust settles on the water and tariffs issue, the goverment should next tackle a review of the proposed 2009 car registration tax. At the very least, hybrid cars should not end up being more expensive than they where in 2008! In fact, considering the song and dance the goverment has made about this budget supposedly being 'green', they should be costing considerably less.
Sadly our goverment at this stage, with a general election far into the future, could not care less about its credibility.
J Micallef
Nov 22nd 2008, 10:47
Green budget indeed....my foot!
I guess too many accountants and lawyers are spoiling the broth. Or the budget...
Why can't we just ensure that rules and regulations are enforced if we really hold the environment to our heart? Why do we keep seeing vehicles not worthy of our rods going about with their business? And then the politicians issue a new tax to buy their conscience.
Julian Zarb
Nov 22nd 2008, 10:18
The choice of whether to buy a hybrid or not is always that of the consumer, the agent as the manufacturer has to be amenable to demands and trends from the client; I do not agree that an agent decides at the outset not to import hybrids simply on a whim or gut feeling, if the client is ready to pay for such a model then he has the RIGHT to that choice. Incidentally, the consumer also has the right to choose their products and services from a wider EU market now!
John Portelli
Nov 22nd 2008, 09:52
With the price of one car in Malta,what ever car it is you could buy 2 cars in Australia.Why is there a need for such high prices when people's income is'nt what it is in other countries???
Wilfred L Camilleri
Nov 22nd 2008, 01:56
The spokesman for the Finance Ministry who said that the car tax reform measure "will only change once "proof" of the hybrid cars' effectiveness is produced" shows how really misinformed the people in the Finance Ministry are. What proof do they need? It is a universally known and proven fact that hybrids reduce pollution. Perhaps in Malta there's some magic that negates this scientific fact! How absurd. The Finance Ministry must be staffed by Neanderthals! Although saying that is probably an insult to Neanderthals!
Muscat.Pat
Nov 22nd 2008, 00:22
Green budget? Green taxes! Repent blue boys repent! The proof is in the eating! You ,like ordinary Maltese citizens have to pay for the government spending spree before the elections, thats why we have the green taxes!!!! What a sham and a dis-service for the environment!
Adrian Aquilina
Nov 21st 2008, 22:42
I fully agree with Mr. Demanuele. For sure I was one who believed Dr. Gonzi blindfolded. God oh God how stupid I was. Hopefully time will come when I can have my say again.
In this country we are always on the losing side, the government wants, wants and wants from us but then they just find any excuse to roll over us.
Thank you Dr. Gonzi, only these last weeks I realised what a truly trickster you can be!!!!!!
B. Demanuele
Nov 21st 2008, 20:29
I'm sure glad i don't drive in Malta sorry guys but you need a change of government one that is in touch with the rest of humanity, this one has lost the plot completely and gone to bye- byes.
From what i hear from my relations over there that Malta has taken not one step but 2 steps backwards instead of forward, .and thats ferdinkum i say wake up to reality Mr. Minister who ever you are G'day.
Frank Galea
Nov 21st 2008, 17:57
Only Honda and Toyota sell hybrids over here. All the others don't. No wonder Mr.Shaw won't be protesting....
lgalea
Nov 21st 2008, 15:15
Another case of ONLY IN MALTA
Mark Cowling
Nov 21st 2008, 15:09
Hybrid cars are not subsidised in the UK. To buy a new Honda Civic would cost 4,400 euros more than the cheapest hybrid model. The more you pay for the car the more tax (VAT etc.) you pay. So the moral is buy a cheaper car and pay less tax.
Mario Zammit
Nov 21st 2008, 14:36
The root to all these inconsistencies is simple. Government found it most covenient to manipulate environmental issues to pose as an eco friendly champion, when reality shows that it only wants to punish citizens for believing its stories about hunky dory fables before the elections. The punishment is bleeding the citizens of its limited financial resources. You cannot run a country on purely accounting considerations. As Eddie used to preach, government's primary role is the social aspect. We're just being led by a bunch of zombie technocrats. That's the result of the change in the label: no more PN but GonziPN. Nice bargain eh!
john borg
Nov 21st 2008, 13:48
EVERYONE WAS WAITING FOR THE CAR TAX REFORM FOR ALMOST A YEAR !!!!!!
NOW..... INCREDIBLY PARTS OF IT WERE " OVERLOOKED " !!!!!!!!
YESTERDAY THE HIGHEST ROAD TAX PRICE WAS THAT OF VEHICLES AGED 18
YEARS.....TODAY THERE IS A NEW HIGHER PRICE FOR 19 YEARS AND OVER.... !!!!!!!
HOW CAN I/YOU DECIDE WHAT TO DO WHEN MIN.GOVT.ADT DON`T KNOW WHAT THEY
ARE DOING
UNBELIEVEABLEEEEEEEEEEEEEEEEEEEEEEE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Michael Said
Nov 21st 2008, 12:54
Everywhere else in Europe countries are subsidising hybrid cars because of their eco-friendly attributes, yet here the government has 'overlooked' this issue. Apart from the fact that local car importers are going to be loosing money due to drops in sales, people are not going to be encouraged to buy hybrid cars. Hybrids were already relatively expensive so this new taxing system is not going to be of any help. Our streets are already very badly polluted. This is all we need.
T Briffa
Nov 21st 2008, 12:41
Green budget my foot! The terms "green" and "environment" are bandied about like PR buzz-words, what they are really interested in is filling up the coffers they have emptied with their erratic spending. Don't give us any "green" hype please, we know you don't mean it - you just want our money. And where are AD in all this? Please, we need to hear from you more!
Adrian Cachia
Nov 21st 2008, 12:10
One has a team of people working all year round on the budget, a government that claims this to be a "green budget" and yet hybrid cars are "overlooked" and taxed more then same as the other cars in the sector. Ridiculous!!
H Dempster
Nov 21st 2008, 12:02
With the introduction of Hybrid cars , there are only 2 people who will lose. 1st are the petrol manufacturers who will lose from sales and 2nd the governments who will lose excise. Who Knows how the petrol makers are paying out and doing thier best to undermine the manufacture and sales of these types of cars. Could this be the case for Malta??????
A Fabri
Nov 21st 2008, 12:00
my friends.....everyone is agreeing with the the principle that the polluter pays.
Nevertheless the only thing I see green in this budget is .......that we will have to fork out more Euro 100 denominations, they are green indeed.
Sorry but Gonzi, Gatt & Fenech for having lost the plot....the problem is Enemalta....seems that white elephants are not extinct in this country.
Peter Lawton
Nov 21st 2008, 11:07
The rest of the EU are promoting hybrid cars giving customers incentives, IN the UK the goverment are looking at ways of subsidising green public transport, even in India they have started to produce hybrid cars. Why has the Maltese goverment got to go against the flow? it will achieve nothing and harm many.
Eric Gahn
Nov 21st 2008, 10:01
"....... this measure will only change once "proof" of the cars' effectiveness is produced."
I totally agree with this statement and would also like to see a temporary stop to the use of horses for Karozzini, leisure and sports until proof of thier environmental friendliness is provided by the manufacturer since these also emit gases that might be harmful to the environment.
Simon Borg
Nov 21st 2008, 09:51
This measure is truly disgraceful. Hybrid cars should be subsidised, not taxed.
Joseph Micallef
Nov 21st 2008, 09:13
Guess this just goes to show. What a lot of hot air we have been force fed. Nice! And the show goes on. Green budget indeed.