Registration tax doubles on older vehicle imports

Ashley Galea

Feb 3rd, 17:49

So why has my car being of E4 status and the registration tax for that car which I bought in December 2011 and checked at the time was €1800. I decided as I was able to, to leave the car in the UK till Febuary 2012 then bring over now, I've just checked the registration again and it has now gone up from €1800 to €2500?????????????

Jason Formosa

Jan 31st, 23:00

Registration tax (here in Malta) only exists as a means of indirect taxation which is unjust if you ask me seeing that it should have been removed now that we're part of the EU.

What I can't understand is that this scheme is supposed to promote the importation of more environmentally friendly cars YET the registration tax for a given car with a lower mileage is MUCH higher than that with a higher mileage. If the registration tax is there to promote greener cars why is this so?

Well, obvious isn't it; people are hardly going to import a second hand car with a very high mileage (especially if they're going to be driving it back to Malta rather than shipping it) thus saying that the registration tax is there to push environmentally friendly cars is bs if you ask me.

Mr M Briffa Viva malta

Jan 31st, 00:20

To all the people commenting below, all is needed in Malta is a change of government, a government that is true to their word, and i think Mr.Muscat might be the man to solve this problem and reverse this double tax on 2nd hand imported cars that now its is making it difficult for people to go along their private lives & falling into a deep hole called money trap, not everyone can afford to buy a brand new car and most have to make do with what they got provided a valid vrt certificate and pay their dues why create more problems for the less fortunate.

Stephen Grech

Jan 30th, 22:05

So this unjust registration exorbitant sum is because of pollution . Great example you gave us Dr.Gonzi with the new power station extension, Heavy Fuel Oil.

To all Gonziand Nazzjonalisti blind folded followers, why those it cost so much to reregister a car which is already registered in the EU?. Isn't the EU one big country where people are free to move and take their belongings with them. Appaud this Goverment who keeps on moving the goal posts and yet some "bolloh" applaud him.

Hallas Gahan.

J Hili

Jan 30th, 21:14

an army tank is euro4 /? thats what you need on this roads

Billie Watson

Jan 30th, 20:06

Reading all these unsatisfied comments both by foreigners and locals alike, is that the bright spark that decided to double the import tax to help the importers of new cars is on a death wish(in a matter of speach that is not literally ofcourse) cause its not going to work, same as in England that went out the window sooner then passed.

Steve Sant

Jan 30th, 19:58

But why should we be tied down or forced to buy a brand new car from Malta to use the scrap scheme, I have an old car for scrap and bought a (brand) new car from the UK. I'm stuck with it, and to top it I have to PAY to return the plates and to de-register it. Funny people.

Janet Bayes

Jan 30th, 18:19

what we all have to remember is this - - no matter what we do, or how much we think we have got the info we need - - until the darn car gets to Malta and is inspected by the powers that are TM and their ilk, we wont know how much we have to pay for any darn car to be brought in. If this kind of robbery happened on the streets there would be a public outcry. Under the officialdom of the governemnt its called car tax. .

Martin Xuereb

Jan 30th, 17:20

Hallas Gahan ghax flimkien kollox possibli :) Jien nzid it taxxa u inti thallas :)

Richard Bridge

Jan 30th, 16:57

Hmmm, let me think of my options:

1. Buying a brand new car in Malta... Nope, they are extortionatley priced.

2. Importing a second hand car... Nope, too much tax. Can't afford it.

3. Buying an old banger off Maltapark that was registered on the 'old' system. THE ONLY FINANCIALLY VIABLE OPTION.

I wonder how long it will be before folk get the idea that a 30 year old rustbucket can be sold for 5,000 now that its too dear to import anything ?!?!?! Besides, try paying the 'license' on anything imported after 2009!

I can see the average age of cars on the road being much more than 12 unless this stupid tax hike is reversed.

Joe Grech

Jan 30th, 16:12

Was this issue ever mentioned in the Budget speech. Were full particulars given or was it a ''stealth'' tax passed notwithstanding the very serious financial repercussions it will have on thousands of Maltese?

R Bartolo

Jan 30th, 16:05

"A spokesman for the Transport Ministry said the real aim of the increase was to discourage the importation of older, dirtier second hand cars."

What is "importation", if not a meaningless tenet. The main effect of this measure is that a used car buyer would, for the same money, now only be able to purchase a far older vehicle from the local market rather than from overseas. So, no Euro 1, 2, or 3, but now, "Euro Zero".

Every measure that prevents a used car buyer from purchasing a better car - better meaning better than what his money can ordinarily afford when sourcing a car from a local source - very logically results in him/her only affording the worse one.

It's a very simple deduction, but one that seems to be hard for our politicians to grasp.



"With an average of age of about 12 years, Malta’s fleet of cars is of the oldest in Europe."


And so it will remain until cars assume the same wage/price ratio as that present in whichever country one wishes to compare with.

Unless - and this is a big unless - the importation of all pre owned cars, whatever the age, becomes registration tax free, or rather, a nominal amount that only reflects the administrative overhead, as happens in so many other European countries that we look up to, if the scope of the exercise is based on comparing ourselves to the rest of Europe.

If this were to happen, the values of vehicles on the road would perfectly mirror those of vehicles overseas, hence far better and newer vehicles would be afforded by all, thus bringing the average vehicle age down to practically the same as elsewhere.

It's a simple concept - make something valuable and it will stick around for longer, the inverse naturally applies.

Of course making new cars cheaper would also be beneficial - but the reality is that any new car has a cost associated with it's manufacture and marketing below which one can not venture, and which hence remains a major factor when comparing to wages. And as already pointed out - the ENVIRONMENTAL cost of manufacturing a new car - INCLUDING CO2 emissions - is very great, and never seems to be mentioned. If we are talking green, it would make more sense to bear this in mind, for environment is not just about the harmful pollutants that can affect human health but also those that can affect the planet. A balance would need to be found.

Hence the recent measures and all preceding are totally and utterly counterproductive and will ultimately result in keeping far older cars on the road.

F. Pisani

Jan 30th, 14:51

OK I agree. But why for the love of god do we have to pay double for a new car in Malta than in the UK. for example I saw a car in Malta that the price on the road was Euro 21000. For the same car in UK, on the road, with full extras, will coast you Euro12000. Can any body explain why is this so? and don't give me that crape that it is about shipping because I too shipped my car from UK and all it cost me was a maximum of Euro 1200.

william cauchi

Jan 30th, 14:47

I can't understand certain comments.

Because the PN and the PL agree on something, then it must be right.

Who cares. All governments, present and future, red, green or blue, left or right, have one aim only. How can they balance their fancy accounts, promote new spectacular projects and give a few titbits here and there to keep everybody smiling. How do you this?

Well what better than with an environment tax. Who can complain...... and the motorists are so good cash cows, they must be used to it by now.

James McIntosh

Jan 30th, 14:47

This is a callous money making scheme designed to "encourage" the purchaser to take a new car which will be liable to have VAT added.
Second hand import are already VAT paid.
There is also the very valid point that the NEW car dealers will be strongly behind this new tax increase as it will influence people to think towards buying new instead of second hand.
Either way it is a tax that was quietly slipped out in the dark as it were, no consultatuion or public announcement, another Gonzi triumph of open, inclusive and transparent Government.

wendy isaac

Jan 30th, 14:31

I would suggest to my countrymen that before they make planes to retire to malta is to think it over not once but twice, as we read from their latest bright idea is to double the taxes on imported 2nd hand cars, nothing but an excuse on their part and yet its another nail on the coffin, as they are going to land with a big bang one day. i say come to the maltese government is to come out clean and inform or advice people well before hand you guys decide or introduce anymore silly excuses. There is no need for it, take a hint from our British government an d use your head instead of tighten a noose around people's necks, i bet you never mentioned anything like this before being elected. Roll on Labour we are routing for you.

MARK MIFSUD BONNICI

Jan 30th, 14:17

Government considers the vehicles age when considering it's scrappage scheme. Considering many vehicles are old as in age but comparatively new when considering their milage. Where is the logic behind imposing higher licensing based upon the cars year of manufacture?

In order to be accountable and not after imposing more senseless taxes Government had better ensure that the pollution of our "new" power station does not dwarf that of all vehicles whether Euro 4, 5 or whatever.

pat muscat

Jan 30th, 13:52

Din bhal tal-500 ewro zieda: kollox minn taht u bla publicita! Thats how Gonzi bla PN worksd!

N. Agius

Jan 30th, 13:49

How many can afford to buy a brand new car and change it every five years. As stated by Mr. Flaherty it does not make sense... You cause much more pollution to build and scrap car in a short period of time that to use it for say 20 years!!!! Here we are trying to fool people into thinking that we are doing this in the name of the environment whereas the one and only reason is to consume more and make the richest richer.

R Bartolo

Jan 30th, 13:46

"A spokesman for the Transport Ministry said the real aim of the increase was to discourage the importation of older, dirtier second hand cars."

What is "importation", if not a meaningless tenet. The main effect of this measure is that a used car buyer would, for the same money, now only be able to purchase a far older vehicle from the local market rather than from overseas. So, no Euro 1, 2, or 3, but now, "Euro Zero".

Every measure that prevents a used car buyer from purchasing a better car - better meaning better than what his money can ordinarily afford when sourcing a car from a local source - very logically results in him/her only affording the worse one.

It's a very simple deduction, but one that seems to be hard for our politicians to grasp.



"With an average of age of about 12 years, Malta’s fleet of cars is of the oldest in Europe."


And so it will remain until cars assume the same wage/price ratio as that present in whichever country one wishes to compare with.

Unless - and this is a big unless - the importation of all pre owned cars, whatever the age, becomes registration tax free, or rather, a nominal amount that only reflects the administrative overhead, as happens in so many other European countries that we look up to, if the scope of the exercise is based on comparing ourselves to the rest of Europe.

If this were to happen, the values of vehicles on the road would perfectly mirror those of vehicles overseas, hence far better and newer vehicles would be afforded by all, thus bringing the average vehicle age down to practically the same as elsewhere.

It's a simple concept - make something valuable and it will stick around for longer, the inverse naturally applies.

Of course making new cars cheaper would also be beneficial - but the reality is that any new car has a cost associated with it's manufacture and marketing below which one can not venture, and which hence remains a major factor when comparing to wages. And as already pointed out - the ENVIRONMENTAL cost of manufacturing a new car - INCLUDING CO2 emissions - is very great, and never seems to be mentioned. If we are talking green, it would make more sense to bear this in mind, for environment is not just about the harmful pollutants that can affect human health but also those that can affect the planet. A balance would need to be found.

Hence the recent measures and all preceding are totally and utterly counterproductive and will ultimately result in keeping far older cars on the road.

Richard Bridge

Jan 30th, 13:31

Its a RIP OFF, quite simple. First you get charged a whopping amount of money in Registration Tax and then they hit you with the huge circulation tax! It was bad enough up until Christmas but then they snook in this DOUBLING of registration tax in the budget.

I bought a car towards the end of last year from the UK but put off importing it until after Christmas. HaH, now I have to pay double the tax... how is a man supposed to budget for that eh? It would have been nice if they had been HONEST in the Budget and told me the tax was doubling. I'd have brought it in December.

I, for one, cannot afford DOUBLE TAX so am now faced with selling my car before I even see it.

I would hazard a guess and say this has nothing to do with the environment or CO2... its a "stealth tax" as we'd say in England.

Thanks!

Ramon Mizzi

Jan 30th, 13:24

Is there a site or information to check out cars and what benchmark it falls under? Thanks.

Mark Anthony Sammut

Jan 30th, 12:43

I don't know if you have realized that this only affects importing cars which are below Euro 4 standard.

I agree with this tax, perfectly in line with the 'polluters-pay' principle of taxation which even PL have said they would want to shift to.

Michael Flaherty

Jan 30th, 12:30

No, no no no. This is all wrong, as usual! Buying a new car every 5 years is worse, pollutionwise, than maintaining the same vehicle for 15! One shouldn't just factor in the emissions - what about the scrap metal, scrap plastic, fluids etc? Those are more harmful than the occasional belch of smoke, common to diesel engines of all ages.

It seems to me that the govt would do better to fix the state of our roads before making unreasonable demands! Dear govt: PATCHING does not do anything at all. If you genuinely want to improve our roads, and not fatten the pocket of your brother-in-law, rip the entire road apart and do it from scratch. I refuse to believe that it takes so long to finish a road - Japan did a highway in 6 days, why can't we?

As long as you're going after emissions, the real culprits are construction /fleet trucks / garbage collecting trucks. Go after them first.

wayne scicluna

Jan 30th, 12:29

We should not have this tax in the first place. All imported second hand cars have been registered before so tax should not be charged twice. And normally ot os not...except on rip-off Malta.

john vernon

Jan 30th, 12:21

I totally agree gents with all your comments, i moved over here last year with my Maltese wife, brought a nice LR discovery with me and import tax was more than the car was worth in the UK, plus the road tax was astronomical, this government is just using European legislation to tax folks through the roof
And what do you see for it, more holes than you can shake a stick at, i for one will continue to drive my 14 year old pajero on the old tax rate, which i must add is too high anyway, another rip off, also due to the fact that the Maltese take pride and look after their cars so well its like new anyway, so why get rid of a perfectly good car just because some clown in a euro government somewhere says that yours and mine old cars don't meet the grade, whose grade, you should visit some of the eastern countries i do and see the old European wrecks they drive.
Half of the old Toyota's from Europe that are supposed to have been destroyed are running around the likes of Iraq and Afghanistan, i don't see their ministers complaining about those figures on their export returns or indeed admitting where Europes rubbish is going

Terry Stride

Jan 30th, 12:15

Wonder why no one has mentioned the ROAD TAX I have a 2001 Nissan Micra in perfect condition which I imported in 2010. My Road tax for this year was €438 which goes up by €50 per year. It was the biggest mistake I made bring my car with me. Looks like it will be going to the scrap dealer next year, as I am fed up of being ripped off/

Angelo Briffa

Jan 30th, 11:58

The maltese goverment is playing the same con like the british goverment did here in uk. The 2000 euro for your old banger but thats only if you buy new car from dealer costing thousands of pounds. Its a big scam that didnt work in uk and most likely wont work in malta as the people with older cars they have them as cant afford brand new cars that cost thousands new or cant get the loans to purchase them. The maltese goverment should have looked how sucessfull that scheme was in britian NOT!!!

Mark Vella

Jan 30th, 11:50

Why doesn't the scrappage scheme apply for good modern second hand car as well?

I mean let's face it.... the options below are equally Euro5

Brand new vehicle with 119 G/km 2011 Costing Euro 15500
Quality second hand vehicle with 119 G/km 2009 Costing Euro 9000 (6500 less)

The above are the same car but only on the new vehicle i can get a rebate from the scrappage scheme. This is nonsense and the whole idea is corrupt to the bone. This is all done in order to protect New Car Dealerships. The Friends of Friends Dealerships!

David Bailey

Jan 30th, 11:41

I have also noticed on the vehicleregistration.gov.mt that the values of second hand cars, even for Euro 4 and Euro 5 vehicles, have increased. Alas it's not some new phenomena where cars actually appreciate in Malta, but because now they are factoring in the cost of freight and insurance of buying the second hand car as if it where new. This has caused the registration tax to go up a couple of hundred Euros for most cars. The law regarding how second hand cars are valuated seems to cater for this cost of freight and insurance since 2010, but it was probably never implemented until now.

Deo Catania

Jan 30th, 11:35

Many used car dealers are importing rubbish. Who needs high milage cars? why import car models which are found easily available for sale as second hand locally? We are just a bunch of crazy sheep, since everyone is buying UK imports then we follow trend. And if there's anyone greedy out there it's the used car dealers who are making huge profits. They simply flooded the island with used imports. Their prices remain high while local second hand cars will have to be sold for peanuts.

Joseph Grech Attard

Jan 30th, 11:33

If it is true that such cars are of detriment to the environment they should be completely banned. Higher taxes are not going to solve the problem. Lower taxes on new cars WILL help. And, on a similar note, , will the heavy oil for the power station do any good to our environment? Why are we not consistent with such decisions?

Mr Jimmie Rowe

Jan 30th, 11:30

I am just wondering, why would someone in his right mind would want to spend an ex amount of money on a new car bearing in mind the state of the roads in Malta and Gozo, i certainly wouldn't , i know one guy an English man as it happens who imported his private car from the UK, and he told me at the time it was in an immaculate condition, six months further driving on our roads, he said it resembled an old banger, bad shock absorbers, body work full of mud, greasy paintwork that i presume came from the local dirty trucks and these horrible pick up trucks we see so often on the roads, and lastly but not least worn out gear box. Now i ask you would you pay 10.000 € or so on a brand new car to drive in Malta, and ofcourse the ADT HAS THE CHEEK & ODASITY TO CHARGE EXTRA ROAD TAX TO DRIVE ON THESE ROADS................ No way Sunshine. i will stick to a decent lower priced secondhand Japanese import, it makes sence until such time when all roads on the islands are brought up to EU standard.

Lawrence Fenech

Jan 30th, 11:15

Rigal iehor minghand Gonzi u shabu biex jistanew huma.

Martin Xuereb

Jan 30th, 11:08

Another reason to vote for Labour ! From Dark blue we turn to light red unfortunately, as more time goes by.

joseph saliba

Jan 30th, 11:07

We must choose. Either GREEN or BLACK.

Alfred Fenech

Jan 30th, 10:55

TAXES< TAXES , TAXES, Out of which, The Govt. gets a better paycheck.Possibly even renew the
500euros extra per week if, a strong if, the PN makes it come next election. What a Mickey Mouse
country. Suddenly I feel a little Franco in me !!!

George Abdilla

Jan 30th, 10:19

Whilst Gov's attempt to lower emissions is laudable, this measure is more aimed at helping the new car dealers who have been complaining for the past few years of lower sales!

instead of selling their cars with a decent profit margin, these upper beings, prefer to keep making huge profits rather than compete properly. its a form of indirect state aid!

If Gov really wants to reduce emissions, Gov should take the bull by its horns and reduce the number of old trucks starting form its own fleet, and assist owners to purchase new ones. Euro 3 imports are not as polluting as 1 might think. the reality is that many of the old trucks we have on the road are Euro pre zero! and most of the Gov fleet falls under this heading!

George Abdilla

Jan 30th, 10:16

Whilst Gov's attempt to lower emissions is laudable, this measure is more aimed at helping the new car dealers who have been complaining for the past few years of lower sales!

instead of selling their cars with a decent profit margin, these upper beings, prefer to keep making huge profits rather than compete properly. its a form of indirect state aid!

If Gov really wants to reduce emissions, Gov should take the bull by its horns and reduce the number of old trucks starting form its own fleet, and assist owners to purchase new ones. Euro 3 imports are not as polluting as 1 might think. the reality is that many of the old trucks we have on the road are Euro pre zero! and most of the Gov fleet falls under this heading!

Chris Xuereb

Jan 30th, 09:56

A couple of years ago I imported a small second hand car from the UK that produces 119 gr Co2, which is still less than a number of new cars and above that I get 45 MPG! I am very happy with this car but looking to having it replaced.....The state of our roads are too much for small cars. When I bought the car it was perfect, had it checked out by a mechanic. Two years on it's a different story, the roads here changed that! And no it's not because it's a second hand import! A family member bought a NEW car and it's the same story. This will only lead me replacing my small fuel efficient car with an SUV with bug tyres and heavyduty ball joints etc......... Before the roads are brought up to international standards it's useless investing in a New Small Car!

Noel Bartoli

Jan 30th, 09:43

'Transport Ministry said the real aim of the increase was to discourage the importation of older, dirtier second hand cars.' .. so why are we getting unwanted old buses from elsewhere ?

V. Cauchi

Jan 30th, 09:30

This amendment will be made by means of Bill 94, the Budget Measures Implementation Act, 2012, which is one of the two pending money bills in the House which has not yet passed as an Act. Article 20 dealing with this tax, started being applied as from the 1st January 2012 even if this Bill has not yet passed into law, as is normal practice. What is abnormal is if this Bill were never to pass the House in the present session and a subsequent government decides not to present the Bill again, or this specific article, in a new session. What would happen to all the taxes paid under the new regime? Would they be paid back or would we face again the same situation as in previous similar circumstances?

Mr Daniel Jones

Jan 30th, 09:27

Rubbish! The aim is to protect the car dealers. Maybe somebody in power has links to them?