Around €1.8 million has been allocated to entice drivers to opt for less polluting cars, Transport Minister Ian Borg said on Monday morning.

During a press conference, Dr Borg gave details on a number of initiatives launched by the government during last October's budget, which came into effect this month.

Some €1 million has been allocated to subsidise the purchase of hybrid cars, with those eligible receiving between €800 and €2,000 each. These funds are available for both private individuals and businesses.

READ: A guide to electric cars in Malta

Dr Borg said around 1,557 applications for these funds had already been received last year.

Electric vehicle subsidies

Speaking next to an electric vehicle charging point in Ta' Xbiex, the minister also gave details on a €500,000 scheme for fully electric vehicles.

Applicants would have to scrap a vehicle to be eligible for up to €7,000 each.
Businesses can receive up to a maximum of €200,000 each to update their fleet of vehicles to electric ones.

READ: AD wants only electric cars on the road within 20 years

A total of €50,000 has also been allocated for those interested in altering their fuel intake to more environmentally-friendly options. Dr Borg said that more than 200 drivers had already done this last year.

In a bid to improve inclusion and accessibility, Dr Borg said the government had also allocated some €100,000 towards electric taxis for wheelchair users.

Chauffeurs or taxi companies could receive up to €10,000 each to help them purchase such vehicles.

All these incentives, Dr Borg said went hand-in-hand with the removal of registration tax on electric vehicles as well as the removed of annual license fees for five years.

Dr Borg said that in the coming days he will also be announcing new funds aimed at encouraging the use of bicycles.