I am not quite convinced if the "popular" initiative for consumers to claim VAT from the government on cars purchased since 2004 is to my personal advantage. In fact, I did purchase a car from a local distributor in 2005 and I did so after exploring the market and decided on the car which, in my view, was the best value for money for my requirements, at least at the time. Subsequently I signed an agreement, knowing full well that the price included cost, freight and other additional charges, including road tax and VAT.

I am now advised by the EU and others in Malta that I may sue the government and claim back any additional VAT I may have paid at the time even if it remains somewhat unclear if this applies in my case or only applies to those who purchased a car within the last year or so, due to prescription. Whatever the outcome, this is for the courts to decide and as a law abiding citizen I leave this matter in their good hands, as I am not competent to form an opinion on this issue.

As a consumer, I would be most pleased to receive a refund from the government on any additional VAT I may have paid. However, as a taxpayer, I may not quite share the same view.

What if my friends, neighbours, acquaintances and others bought two, three or more cars in the meantime? Who is going to ultimately pay for the excess in VAT received by the government? What about those "consumers" who did not buy any cars during this period, which must be the majority of the Maltese?

It has been stated that if the courts decide in favour of the "consumer", the cost to the government would be in the region of €50 million. Who will eventually fork out this amount? The "consumers" will prima facie be most content with this windfall, only to find out that they may have to pay more through (other) taxes to bridge the resultant shortfall. Those who never purchased a car since 2004 would also have to fork out their share to make good for this shortfall through taxes.

Is this what the Maltese really want? In my view, it may be better for all of us to look before we leap!