More than 700 people who bought a car in 2008 under a vehicle registration system introduced then should be receiving their refunds of the registration tax paid.

Speaking in Parliament, Finance Minister Tonio Fenech explained that the cheques with varying amounts had been mailed to around 740 people who should receive them this week.

The refunds, which add up to a total of around €1 million, were offered as an incentive in 2008, during a changeover to a new system, to new vehicle owners who had a choice of paying the old or new registration tax.

The government had decided to refund those who chose the new registration system through credits to their road licence over a number of years.

Mr Fenech explained that owners who bought small cars that polluted less benefitted most, but since the refund through credits was to take a number of years, the government recently decided that their outstanding balance as of July 1 would be paid back immediately.

The registration regime was overhauled with the tax based on the value, CO2, particulate matter, age and length of the vehicle and favours smaller vehicles with low-level emissions and cleaner technologies as well as motorcycles.