The car tax system is being reviewed to bring it in line with EU requirements while also taking into consideration the local economic, social and environmental aspects, the government said this afternoon.

It was reacting to an infringement procedure brought against Malta by the European Commission for the application of VAT on the car registration tax.

“The Maltese government is seeking to overhaul the present car tax system in such a way that would not significantly impact the local economy, keeping in mind that hasty decisions is this sensitive sector could prove detrimental to both consumers and car traders,” the government said.

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