A bipartisan agreement will see a Budget proposal reducing the car registration tax for clean vehicles being implemented just the same.

The measure that would have seen the car registration tax of new, cleaner cars – known as Euro V vehicles – drop by 30 per cent was blocked after the Budget was voted down in Parliament last month.

But in a statement yesterday the Government said it will be issuing “regulations” to ensure the proposed change came into force as a result of a cross-party commitment to retain the measure after the election.

“The Government decided on the introduction of regulations and the difference that had to be paid by those who booked their car will not be requested,” the statement said.

The Government notice also said that if the regulation was not revoked by June 1 it will become permanent.

Speaking to The Times, Finance Minister Tonio Fenech said once Labour committed itself in writing to honour the Government’s decision he had no problem to find a temporary solution.

“Labour told us they agreed with our measure and so we decided to unblock this impasse,” he said. The issue was also raised yesterday morning by Labour leader Joseph Muscat during a visit to Burmarrad Commercials.

Dr Muscat confirmed he had a meeting with the Association of Car Importers where he pledged his party’s commitment to retain the latest tax-reduction measure.

Industry sources had told The Times that hundreds of new cars were imported but held in stores because their prospective owners were awaiting the implementation of the Budget before paying the registration tax.

The reduction by some 30 per cent will mean a small new car should cost some €800 less.

ksansone@timesofmalta.com