Registration tax on certain categories of second-hand vehicles imported from outside the European Union will be reduced to encourage the purchase of less-polluting cars.

This measure will apply to those vehicles manufactured up to eight years ago whose emissions do not exceed 150g/km.

The changes are in line with those introduced some years back through which the registration tax on M1 category vehicles (which can carry up to eight persons, excluding the driver) is worked out according to the emission levels.

Registration tax on motorcycles with an engine greater than 250cc will be reduced by 25 per cent. Models with smaller engines are tax exempt.

Other measures encouraging drivers to switch to lower-emission vehicles are the continuation of the autogas conversion scheme launched last month. Beneficiaries of this initiative will be refunded part of the expense incurred to convert their vehicle to autogas. In addition the Government will invest in strengthening the infrastructure of autogas service stations.

The vehicle scrappage scheme will be extended by another year. Beneficiaries will receive a grant of between €500 and €900, depending on the emission levels.

In total the Government will be allocating €600,000 for this scheme.

This scheme did not meet our expectations

The latest scheme has attracted very little interest from car owners, with only a third of the targeted number of cars applying in four months.

Contrary to the previous two schemes, which offered up to €2,000 for owners who scrapped their old cars and bought new vehicles, the new scheme offered a €500 flat rate.

Only 340 applications were received by September 15 and only 200 of the vehicles were actually scrapped.

Car importers had partially funded previous scrappage schemes but were not contributing to the latest.

“This scheme did not meet our expectations,” car importers’ association president Maurice Mizzi told this newspaper.

“With the pollution level in Malta being among the highest in Europe, the country needs to invest in a new fleet of vehicles which are more environmentally friendly,” he said.

The previous two car scrappage schemes had taken more than 5,000 old cars off the road in two years.

The 2010 scrappage scheme saw car importers contributing €600 of the €2,000 rebate in an initiative which had been partially intended to boost car sales.