Car imports are at a standstill because of the Budget deadlock, industry sources said yesterday.

A fast solution is required if we don’t want companies to start firing employees

During the last Budget, the Government announced a new measure aimed at incentivising the purchase of new and more environment-friendly cars.

The measure, which now cannot be implemented until a new Budget is approved by Parliament, cuts the registration tax of new vehicles – those technically known as Euro V – by some 30 per cent. This means a small new car should cost some €800 less.

“Hundreds of new cars have been imported but are held in stores because their prospective owners are awaiting the implementation of a new Budget before paying their registration taxes,” the sources said.

“This is causing big headaches for car importers, particularly because of massive cash flow problems. A fast solution is required if we don’t want companies to start firing employees,” the sources said.

Through the Association of Car Importers Malta (ACIM), car importers are urging the two political parties to commit themselves that the measure will be implemented in a future Budget so the stalemate is unblocked.

“We want some kind of solution that will solve the matter as we cannot remain in this situation for several more months,” a spokesman for ACIM said.

Contacted by The Times, Nationalist Party general secretary Paul Borg Olivier said the party had already given its commitment to car importers. “We have already said the Budget, with all its measures, will be presented as soon as Parliament reconvenes,” he said.

“The PN in government has proposed this measure because we feel it’s important to continue to incentivise environment-friendly cars.

“This measure will now also be included in our electoral programme,” he said.

Although the Labour Party has already promised it will keep all the positive measures in the Budget, it is still not known whether the Euro V measure will be one of them.

Questions sent to Labour yesterday remained unanswered.

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