Philip Anthony Hagan, Naxxar
Tax discrimination against imported cars
Can anyone please explain why the Maltese government is being allowed to practise active discrimination against both their own citizens and foreigners?
Having been rapped over the knuckles because of the illegal practice of charging huge motor vehicle importation and registration duties, the government finally accepted that it was wrong and reduced these taxes only to replace them with other discriminatory taxes.
The VAT element that one was forced to pay, also declared illegal by the EU, has now been scrapped but, of course, no refunds are being made - basically the government is saying: "We taxed you illegally and got away with it!"
Now we find that if we have a car which was originally bought in Malta we will pay one amount for the Annual Circulation License Fee but if we import exactly the same car from the UK then we have to pay a much larger annual licence fee. How can this be legal and non-discriminatory?
In April 2008, Minister Tonio Fenech was quoted in The Times as saying: "We will also be taking steps to address other issues mentioned by the Commission, including that of discrimination on cars imported from within the European Union and those imported from outside the EU. This is a whole complex reform that we are working on and we hope to announce the details soon."
So, Mr Fenech, is this your idea of non-discrimination?
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Deo Catania
Dec 1st 2009, 11:32
Cars bought new locally or imported and registered on/after 01 Jan. '09 pay much less reg.tax than the exact same cars registered up to 31 Dec 08 so to eliminate discrimination about ACLF the government should refund all those who paid HIGH reg.tax. ACLF increased dramatically on cars registered under the new regime simply to make up for the money lost on reg. tax so at the end of it all the government still gets more money.
Joseph Pace
Nov 30th 2009, 09:11
I totally agree that this is discriminatory, how can this tax be considered green when it is partially based on the value of the car? so a new greener car with less emissions might still cost you more than a second hand less environmental friendly car since the valuation is higher. on the other hand, importation of cars under the new regime is higher than the previous system. so it is like saying, thank you government for ripping us off!!!!!!
Ricky King
Nov 29th 2009, 12:55
Yes most definitly Francis Bellizzi one of these people who is paying high taxes in my country that consequently ends up in some potsie little country and one of these countries
is Malta for one now that you mention it. Thisconincides with your miserable tax discrimination on imported cars, i think you all know the story by now. a friend of mine had the misfortune to pay such vat and registration tax twice for his imported family car, and still the local ADT had the odasity to charge him road tax to drive on your shall i dare and say Roads? LOL.LOL.LOL.LOL. bent backwards.
John Anderson
Nov 29th 2009, 12:41
I think all you guys below commenting on the illegal/ VAT/ registration taxes hoping that maybe one day only God knows when, will be reimbursed, including myself who paid a very high price for my 5 year old vehicle which i had in my possession for the same period, are banging our heads against a brick wall, as once you part with your money knowing the Maltese authorities, is like getting blood out of a stone... and we will probably be dead and gone before these people will be brought to justice by the european courts, so we shouldn't hold our breath for too long, it might never happen regardless who is in power with all their promises and more promises, so i just take it with a pinch of salt and learn by my mistakes primerily bringing in a family car into a country that is not >just to us foreign residents.< VERDICT NEVER AGAIN!, so the only advice i can give to my fellow countryman think twice before moving to these islands, its a very costly business.
Francis Bellizzi
Nov 29th 2009, 09:05
Come on it`s common sense, is it not? The Maltese government has no money, the population is taxed to the hilt on the most miserly salaries in the EU, so that leaves the foreigners and anyone else that imports a motor vehicle has to pay. The government should be punished by stopping all the EU funds finding thier way into it`s coffers until it comes into line with the rest of the EU.
Mike Knight
Nov 28th 2009, 23:58
Somehow by the numerous victims's comments' of this illegal Vat , i get the feeling that this present government's days are numbered, and Labour will be in by a high majority, its just my opinion and doesn't necessary reflect on others who differ, as they say its their prerogative.
lgalea
Nov 28th 2009, 21:03
R. Mallia
The shame is on the PN government and not on Malta. It is the Pn government that wanted to continue ROBBING people until Gonzi got his ears twisted by the Commission, but he still does not want to give back what he, as the Government not personally has ROBBED from drivers.
James Green
The bolla balla became a nuclear bomb under the PN administrations. You'll see that the ROBBED VAT will be paid back notwithstanding that the GREEDY eu does not want to pay its share back and notwithstanding that it had declared that it was collected ILLEGALLY. So the eu is itself a ROBBER and an ACCOMPLICE in the ILLEGALLY COLLECTED VAT.
Peter Symonds
Nov 28th 2009, 19:56
Well now my Catholic friends talking about :*Thou Shalt not steal*: it looks as if you guys in Malta broken that commandment in all aspects., redeem my friends and return it to their rightful owners, namly my old parents living on Gozo (pensioners).. Thankyou and goodbye from an outsider * Tourist on a a beautiful island of Gozo. Peter Symonds Birmingham UK GB.
R. Mallia
Nov 28th 2009, 18:38
it's not just foreigners...even us Maltese pay vehicle registration tax (whether new, locally bought or imported) which I agree with you is day-time robbery and a shame for Malta.
James Green
Nov 28th 2009, 18:04
We joined the EU with all the responsabilities and very few of the benefits.
Free movement of goods my posterior.
Try moving a newly imported car here for more than a week .
@ Fred Lewis
So you believe that if Dr Muscat if elected he will refund all illegitimate vehicle taxes AND remove ALL said taxes. Myself I'm a bit sceptical. I'll believe it when I see it.
Shades of bolla balla.
Barrie Smith Aussie
Nov 28th 2009, 16:11
Well said Eric good on you mate, no other word to discribe their actions on us foreigners, why we choose Malta i never know now, maybe a u-turn is in the bag for us. Brucie the Barbarian.
Eric Baitman
Nov 28th 2009, 15:45
Illegal taxation on imported family cars is not the word i would use, i call it personally > Day -Light Robbery by the \\\greedy Maltese Authorities who if i may add sometimes don't know whether they are standing on both their feet or on their heads, as none of them know what they doing, they don't seem to give the right answer to any given question. A Bunch of Amateurs cause all they see infornt of their beedy eyes is Money from us foreigners, nasty by happens to be true, unless someone have a different opinion why we have to forfeit more tax and vat to the local authorities then what the car is actually worth..; Doesn't make sence except more money from us in the coffers, definitly not amused, but not for long my friends, learn a lesson from the downfall of the latest news from Dubai.
Fred Lewis
Nov 28th 2009, 15:31
No worries Mr.Hagen, when Dr.Muscat is elected in the next general election all the VAT paid illegally to the present regime will be reimbursed as promised and hopefully those of us including myself who paid a heavy duty on our imported family cars from home will live happily ever after.
Albert Bezzina
Nov 28th 2009, 09:57
Mr Hagen, you are right, the current system is still and still goes discriminatory against Article 90 EC. That is why the European Commission has still not sanctioned the new car tax regime. The situation is obvious. It should have been obvious to the 'legal experts' giving advice to Government on the car tax changes. Does not matter, will still buy government some time, at least till the day before the hearing at the ECJ when it will replace the current tax system with another controversial system which will in turn buy more time for Government to sustain a restrictive and environmentally counter-productive car tax regime.