Labour files VAT judicial protest

The Labour party yesterday filed a judicial protest on behalf of 17,600 consumers expecting a reimbursement of the VAT charged on the vehicle registration tax after Malta joined the EU in 2004.

The 17,600 consumers had queued outside the party's headquarters in March as part of a campaign it launched after EU Commissioner Laszlo Kovacs said that VAT should not have been charged on car registration tax. If the judgement goes against the government, anybody who has bought a car since May 1, 2004, including those who have not been part of the court case, will be eligible for a refund. This would set the government back around €50 million.

In a statement yesterday, the party said this was the first concrete step towards opening a proper court case on behalf of these consumers.