The registration tax of commercial vehicles is being reformed to encourage the use of cleaner vehicles, Finance Minister Tonio Fenech announced today.

He said that the new system will promote Euro 5 and 4 commercial vehicles which are regarded as the least polluting. Vehicles of such standard will have no registration tax.

On the other hand, for Euro 3 and lower‐standard vehicles, registration tax will be levied according to weight not to value.

He said that there could be instances where the registration tax on vehicles of this category marketed by importers, would be allowed a two‐year transition period during which vehicles will keep on being sold under the former regime.

Licences under the new system will also take the eurostandard into consideration.

Licences in the Euro 4 and 5 categories will eventually be reduced in the first nine years, whereas those of a lower standard will increase.

Commercial vehicles already registered will have four years before the new licence rates become effective. This should be a good opportunity for business owners who will be given a chance to renew their heavy vehicles.