This legislature’s drive to modernise cars on Malta’s roads will continue with a raft of Budget measures that include a significant reduction in the registration tax on the least pollut-ing cars (Euro V) to a maximum of 30 per cent.

The policy is to have smaller, less polluting and more modern cars on our roads

“The Government’s policy is to have smaller, less polluting and more modern cars in our roads,” said Finance Minister Tonio Fenech.

Car registration tax will continue to be tied to the Euro standard, a calculation based on the emissions expelled by vehicles. To this effect, last year’s initiative to penalise financially those buying the more polluting Euro I and Euro III cars has now been extended to Euro IV cars, with an average increase of 10 per cent.

Meanwhile, cars imported from outside the EU that are not older than five years and have CO2 emissions lower than 130g/km will have their minimum tax registration reduced to €1,000.

Light commercial vehicles under the N1 category will also see the registration tax cut by 12.5 per cent.

The popular scrappage scheme for private cars, which was almost fully subscribed over the past two years, has been extended to commercial cars but reduced in value.

Over the past two years, drivers were offered a maximum of €2,000 to scrap their old cars. The sum has been reduced to €500 but this will also apply to commercial vehicles. A maximum of €500,000 has been assigned to this measure.

Such measures are intended to address the fact that Malta has among the oldest cars in Europe. The purchase of more modern cars is expected to lower the amount of air pollution, which is responsible for many respiratory illnesses.

The use of motorbikes has also been encouraged. Registration tax for bikes with an engine capacity of less than 250cc will be removed while the tax on bigger machines will be reduced by 25 per cent.