The 7,000 car owners so far eligible for a VAT refund on vehicle registration tax would have to apply every year for payments staggered over seven years, Transport Minister Joe Mizzi said.
He said the public would be reminded to submit their application every year.
Since the refund scheme was launched in January, he said, Transport Malta received 9,500 applications, 7,000 of which were deemed eligible. Those eligible must apply by March 28 and would receive their first payment in the second week of May, Mr Mizzi said during a press conference on the Marsa footbridge yesterday.
The scheme is open to those who had paid VAT on the registration of new or second-hand vehicles registered between May 1, 2004 and December 31, 2008.
The refund can be claimed on category M1 vehicles registered for personal use (vehicles having no more than nine seats), category NI vehicles (used for the carriage of goods, not exceeding 3.5 tonnes), motorcycles and quad bikes. All vehicles must have been registered and licensed in Malta.
The refund must be claimed by the first licensed owner, irrespective of whether the vehicle is still in his/her possession, meaning that even if the vehicle was sold or scrapped, the original owner would still be eligible for the refund.
The scheme does not include licensed vehicle dealers or importers, unless the dealer or importer proves that the vehicle was registered and licensed in his/her name and intended for personal use. Heirs of those eligible will inherit the refund.
When the scheme was launched, Finance Minister Edward Scicluna had said the value of refunds would be between €25 million and €30 million, divided among about 40,000 vehicle owners. Sixty per cent of applicants will be receiving between €500 and €1,000, with the average sum being €771.
Prof. Scicluna said the government had allocated €3.5 million from this year’s Budget to pay the first instalment.
In 2011, the European Commission closed an infringement procedure against Malta over the VAT charged on vehicle registration tax under the old car registration tax system that essentially consisted of the payment of tax on the value of another tax. The procedure was stopped in view of the changes on the taxation system on cars.
The present car registration tax, which came into effect on January 1, 2009, introduced environmental considerations into the tax system to encourage the use of smaller and environmentally cleaner cars.
For more information call on 8007 2373 or visit http://transport.gov.mt .