New car importers today called for an urgent meeting with the government to finalise the new vehicle tax system and for a formal announcement of the new system to be made immediately.
William Shaw, Secretary of ACIM (Association of Car Importers Malta), said:
“The government is feeling comfortable with progress on the new vehicle tax regime because the figures for the first six months of the year, which reflect cars delivered, are more or less the same as last year’s. But this year new car importers have received far fewer orders than last year.
“This has already started showing in the figures for June and July, and will be felt more and more in the remaining months of 2008.”
Mr Shaw stressed that ACIM is not insisting that the new system be introduced immediately if the government is not in a position to implement it. “At least we will know what the new system is, we will be in a position to order vehicles according to the new norms to be introduced in the coming months and the Maltese will know the price they have to pay for these vehicles.”
He explained that there had been great expectation for the reform in the registration tax system since Malta joined the EU and prices had become more transparent since the adoption of the euro. The Maltese could see prices shown in TV commercials in Italy and compare them with local prices.
Commenting on the proposed new system, Mr Shaw said ACIM does not agree with the congestion element since Malta, as far as was known, would be unique in adopting this type of tax on car sales. Congestion charges are applied in cities, and there is already one in operation in Malta – in Valletta.
“ACIM understands that, under the new tax system, small cars will go down in price. In our opinion, this decrease is not enough because medium sized cars will cost the same and large cars are going to go up,” Mr Shaw said. “This measure will negatively affect Maltese families with children because they need a medium-sized car and these are the cars that are taxed the most.
“Under the new tax system new cars are not going to be significantly cheaper.”
He said the ACIM also objects about the delay in the publication and introduction of the new tax system, a lack of consultation on the details of how the new congestion element of the tax is going to work and the collection of VAT on the registration tax – a tax on a tax – which Government continues to collect in breach of EU directives.