The government has no plans to remove the vehicle registration tax despite a recent call by Labour MEP Joseph Cuschieri's call for its removal.
The government recently unveiled a scheme through which it will refund €31 million paid in VAT on registration tax for cars purchased between 2004 and 2008
However, a Finance Ministry spokesman said that there were no plans to remove vehicle registration tax itself.
Estimates based on official government figures show abolishing this tax would result in the loss of some €40 million a year in government revenue.
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