The Malta Automobile Club welcomes the estimated €80 million in capital expenditure for the construction of roads and maintenance works, in addition to other money coming from European Union funds. But it is concerned about the estimated increase of €13 million in vehicle taxation in 2019.

Is it possible the government is anticipating such a big growth in the importation of vehicles next year to justify an increase of €8 million in revenue from registration tax, up from €47 million to €55 million, and in the number of vehicles on the road to the extent that its revenue from the annual circulation licence fees would rise by €5 million, from €74 million to €79 million?

Or is the government planning to increase vehicle taxation? Is there any reason why the Minister for Finance did not explain such increases?

It is hoped car owners in Malta are not being discriminated against when compared to all the other sectors of the Maltese community. It is hoped car owners will not be the only sector that does not benefit from the current economic “success”. What is the use of boasting about a “surplus” if car owners do not benefit from such “surplus”?

Vehicle taxation as a percentage of total taxation is the highest in the European Union. Vehicle taxation in Malta is three times the EU average (European Commission publication ‘Taxation trends in the EU’, table 70, page 239: https://ec.europa.eu/taxation_customs/sites/taxation/files/taxation_trends_report_2018.pdf).

The Malta Automobile Club had launched a petition to reduce vehicle taxation in Malta but, apparently, this has fallen on deaf ears.

The government should explain exactly what is behind the €13 million increase in vehicle taxation in 2019.