Car scrappage scheme ended as target is reached
The scheme was partially introduced to reduce CO2 emissions.
The car scrappage scheme has been withdrawn just six months into its one-year term after the 2,000 vehicle-target was reached, The Sunday Times has learnt.
A spokesman for the Finance Ministry said the government was now in the process of evaluating whether the popular scheme should be extended.
The scheme, which was only open to private individuals, paid a rebate of 15.25 per cent of a new car’s wholesale cost up to a maximum of €2,000 in return for a scrapped vehicle that was at least 10 years old.
Car importers paid €600 of the €2,000 rebate which was being offered for old vehicles in the initiative partially intended to boost car sales and reduce CO2 emissions.
New car importers are lobbying the ministry to extend the scheme because of its success, The Sunday Times is informed.
The scheme was meant to encourage the purchase of small vehicles but the parameters did not restrict the choice to city cars. Bigger and compact executive cars such as the Ford Focus and the BMW 1 Series, as well as the Ford C-Max and the Citroen Picasso family cars, fell within the parameters.
Importers of new cars witnessed a slump in sales since changes in the registration tax regime which made more customers opt for imported second-hand vehicles.
Successive Budgets have introduced different initiatives to help importers improve sales, including the reform of the car registration tax, which made new cars cheaper and second-hand cars more expensive to register, depending on their age and overall length.
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Tonio Bone
May 29th 2011, 16:49
Considering the exagerated amount of vehicles on the island, and considering that traditionally cars are kept well beyond their expiry date, I feel the target of 2000 vehicles was extremely low, so much so it was reached in 6 months.
If the authorities really have this issue at heart the scheme should be kept for a period of time and not a numbered target. In this case it seems a fixed cost was fixed (presumably in the interest of our enviroment), yet its common practice for national scale projects to go over budget sometimes even costing twice what was originally planned.
This scheme should be re-introduced, it's a no brainer.
Mr Tony Camilleri
May 29th 2011, 12:40
How about checking the fuel quality we have in Malta as vehicles do not even approach the mileage which the same vehicles achieve on the continent?
How about checking all the fuel pumps because it appears that we are being short-changed with less fuel than we are supposed to be getting and rumors abound that the authorities know that at least we are getting 10% less fuel than we are supposed to get and still less from certain pumps?
How about surprise visits to check fuel quantity and quality and not having the fuel pump owners warned beforehand about a pending inspection?
Mr Albert Bezzina
May 29th 2011, 11:31
While the solution for reducing cars on the road has always been to offer the public an efficient, cost effective public transport service for those who find it suitable, the solution to make a marked change in the road worthiness, fuel efficiency and road safety of Malta's passenger car fleet is to do away with vehicle price based forms of registration tax.
The aged passenger car fleet on the Island is a result of the decade’s long restrictive vehicle taxation policies aimed exclusively to prevent export of local cash. The 'environment card' has only been played in the last few years ignoring the fact that the main polluters are the aged vehicles AND especially the older and mechanically abused commercial vehicles.
The government has suddenly found the money to pay for public transport infrastructure and buying off the old bus operators for a grand total of over €60 million (plus a dozen 'Coliseum' pines at €5700 each which are already quite sun burned). Arriva will be investing a lower €35 million. Government's procrastination in establishing a decent public transport system 10 years ago has lead directly to the high passenger car fleet on the Island. It now has the cheek to trumpet this incentive scheme when all it is doing is forfeiting the right to collect VAT on the sale of the vehicle. It is therefore costing it nothing (15.25% of the selling price is equivalent to the 18% VAT which is added to the selling price before VAT). To have an ideal combination of safety and fuel efficiency, medium sized cars from prestigious makes are the best.
Christopher Pollard
May 29th 2011, 11:16
If the government really wants to cut car use then it could offer a different sort of scrappage scheme whereby the car is scrapped, at the government's expense, and the owner is rewarded with free Arriva bus travel for a couple of years. But surely the old scheme was to help car sales - not really a green initiative although it was dressed up like one.
Mr Tony Camilleri
May 29th 2011, 12:37
Christopher Pollard Why should I use the public transport if I don;t want to use it?
Do you think that everyone has the time to spare to use the public transport however efficient it becomes or that it will take you to wherever you want to go?
No way am I going to be forced to use the public transport instead of my car.
Mr Matthew Galea
May 29th 2011, 11:14
would have been much better if imported cars where included.
a BMW 1 Series with a 2.0L Turbo diesel costs ~ €14,000 which does not have emissions as one may think. only about 115-125 (can't remember exactly) which is quite low!
I would rather pay 14,000 for a 2007 BMW 1 Series than a Brand new Fabia,Polo or Alto.