The European Commission has published the latest edition of ‘Taxation trends in the European Union – Data for the EU Member States, Iceland and Norway’. According to the report, Malta has the highest rate of vehicle taxation among all the countries.

These taxes cover both the vehicle registration tax as well as the annual licence fees.

In Malta, 3.49 per cent of total taxation is collected from vehicle taxation – the highest percentage among the 28 EU countries. This means that under the new administration, car owners and drivers have not fared any better than under the previous one.

The lowest rate of vehicle taxation as a percentage of total taxation is found in Lithuania, at just 0.16 per cent.

There are 10 EU countries where vehicle taxation as a percentage of total taxation is less than one per cent and 12 other EU countries where the figure is less than two per cent.

There are only three EU countries where vehicle taxation is between two and three per cent and only Denmark and Ireland have total taxation above three per cent, besides Malta.

The average vehicle taxation for the EU 28 countries is 1.26 per cent, whereas in the eurozone the average is 1.15 per cent, almost a third that of Malta.

Only a very small percentage of vehicle taxation is invested in road construction and improvements in Malta, and the current traffic congestion situation is the direct result of such a lack of investment.

In the circumstances, the Malta Automobile Club is renewing its call for the reduction of vehicle taxation in Malta. There is no reason why car owners and drivers in Malta should be burdened with the highest taxation rate in the EU.