AD starts legal action over car VAT

Alternattiva Demokratika yesterday filed a judicial protest against the government on behalf of 14 people who are demanding a refund of the money they paid in VAT on the registration of their cars.

There would have been more people, AD chairman Arnold Cassola said outside the court house shortly after filing the protest, but they feared taking action against the government.

The action comes after the European Commission recently suggested that people could ask the courts to decide on whether they were entitled to a refund of the VAT they paid on the registration of their vehicle since Malta joined the EU in 2004.

The government insists that the tax is not illegal but both the Labour Party (PL) and AD have been arguing that, under EU rules, the VAT levied on top of registration fees should have never been charged.

Labour, in fact, is preparing to file similar action but both parties were pre-empted on March 3 by a private citizen, Michael Camilleri, the owner of a Mercedez C Class who paid about €2,000 in VAT for the importation of his car, which he drove to Malta from the UK where he used to live. He too filed a judicial protest, warning of further legal action unless he is compensated for the extra VAT.

The PL has urged those who would like to join its court case on car registration tax to subscribe today between 9 a.m. and 5 p.m. at the its headquarters in Ħamrun or in Victoria. Anyone who bought a car since May 2004 and paid VAT on their car registration tax can apply. They must first complete two forms available on www.mlp.org.mt and present them, together with photocopies of their identification card and log book.