Alfred Farrugia (‘Highest vehicle taxation rate’, The Sunday Times of Malta, January 24) did not understand the main point of my letter. The rate of vehicle taxation in EU statistics is worked out as a percentage of the total tax burden – that is the total amount of taxes.

Now, since 17 other EU countries have a higher tax burden than Malta, since the rate of car ownership in Malta is high and since here we do not pay a host of other taxes, the percentage of vehicle tax as a percentage of the total tax paid is obviously higher.

Put simply, if Tom pays €5 income tax, €5 VAT, €5 council tax and €1 on his car in Germany, and Dick pays €5 income tax, €5 VAT and €1 on his car in Malta, Tom pays 6.25 per cent of his tax payments as vehicle tax, while Dick pays nine per cent. Tom is still paying more tax, since his tax burden is higher.

Farrugia mentions one of the worst polluters in the world, the US, and tells us how low taxes are there. The car and oil lobby is very strong in the US. Fuel is so cheap that car manufacturers do not even bother about fuel efficiency. When they feel that their sources of oil are threatened, they send their young and poor to kill and get killed. Probably Farrugia thinks all this is well and good; it’s the ‘I’m all right Jack’ attitude. God forbid we emulate the US.

Luxembourg is mentioned. Again, the 0.38 per cent of vehicle taxation is a percentage of the total amount of taxes paid. The maximum income tax rate in Luxembourg is 40 per cent (with no less than 19 tax bands); other tax payments include 25 per cent of the gross salary on social security, divided between the employer and the employee, property taxes and inheritance taxes (up to 40 per cent).

Just focusing on the 0.38 per cent of the total tax burden is again, misleading. The tax-to-GDP ratio in Luxembourg is 39.3 per cent, while in Malta it’s 33.6 per cent. So, overall, the Luxembourgish pay 5.7 per cent more tax than Maltese residents. Maybe Farrugia should suggest which taxes he wants increased to make up for the loss of revenue from vehicle taxes. Farrugia mentioned cities with ‘more cars’ than Malta. In fact, the traffic situation in Luxembourg city is so bad that there are calls for a congestion charge to keep cars out of the city centre. In central London a congestion charge of £9 is levied, while Milan charges €4. Clean air and car-free city centres are a priority for some, obviously not for Farrugia.

Farrugia also asks if if I or AD will work to promote competition in the fuel market. No, I will not rush to endorse his proposal on fuels. Instead, against all odds, AD will continue to promote an adequate and sustainable income for the State for better public services.