Equal treatment

According to the Financial Times last Wednesday, new vehicle registrations across Europe are down 8.2 per cent on the previous year, figures released by the ACEA, the manufacturers' association, show. The financial crisis is putting a few spanners in the works and the sector is struggling to finance operations and research and development.

The ACEA said registrations in the EU, excluding Cyprus and Malta, but including the European Free Trade Association, totalled 1.3 million, the lowest September record since 1998.

Even here, sales are slightly down on last year's figures, according to the Car Importers Association. Global financial anxiety weighs on Maltese investors' minds, but this is not the main reason behind the slowdown locally.

Just under a year ago, the government promised to review the tax regime governing car sales, and planning a tax on emissions to replace the hefty registration tax. In the meantime, €23.1 million in registration tax went into the government's coffers by September 26.

Earlier this year, the association called on the government to make its intentions clear, and two consultation meetings have been held. An association spokesman says the uncertainty has hurt the sector, and it was time to get things straightened out in the Budget next month.

Customers walking into a showroom were entitled to answers to some pertinent questions: why should a Maltese family pay 35-40 per cent more for the same car in a EU country? Why does the government snatch up to €8,000 from the sale of a €15,000 car? Why does the government seem intent on taxing the length of a car, forcing families to consider hatchbacks when a notchback suits their needs better?

The association says the government should be realistic. It should offer solutions which are tailormade for the Maltese scenario and which treats the local consumer like any other in the EU.

For instance, why not draw up a scrapping programme to incentivise people to consider replacing their old car with a new or nearly new environment-friendlier model?

Why does Malta always have to be different?