Monday, 3rd November 2008 - 20:21CET
New vehicle registration tax announced
Higher licences fees for older vehicles
The long-waited Vehicle Registration Scheme, announced in the budget this evening, will see registration costs drop by 44% for vehicles up to 1000cc and by 28% for medium sized cars but the powerful cars will see registration costs rise from 25 to 45 percent.
Finance Minister Tonio Fenech explained that registration tax would be based on emissions of CO2, particulate matter and the length of the vehicles.
Payment of VAT on registration costs would be removed.
The first phase of the new registration scheme will be based on cars, including self-drive cars, bought from next January 1 but those cars bought this year can be included at the owners’ option.
The new registration tax will apply to commercial vehicles at a later stage.
Tax on second hand vehicles will be determined on the basis of their commercial value but there will be a high minimum tax on cars older than five years manufactured outside the EU, to discourage their importation.
Vehicles under the new registration tax will pay a higher vehicle licence tax which will be fixed for the first five years and then start to rise gradually.
With regard to cars already on the roads, the vehicle licences will start to rise marginally for cars older than seven years, particularly in the case of diesel powered ones, as a means to discourage old cars on the road.
Furthermore, commercial licences are to rise from the current €93 to €185. This does not apply for buses, coaches, mini-buses and trailers.
The minister said the government wanted to see a reform of the bus fleet, with vehicles of various sizes by 2010 and liberalisation of unscheduled services. The viability of reintroducing a tram service is under study.
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Tourists can use their foreign-plated vehicles for up to 185 days in every
calendar year; when this period expires the vehicle must be either
registered locally or exported from the country.
Residents cannot use a vehicle that is not registered and plated in Malta
and must start the registration procedure within five days from arrival of
the vehicle in Malta.
5. I am a Maltese citizen who has been living abroad and I would like
to return to Malta with my vehicle. Can I apply for an exemption on
registration tax and VAT?
There are no exemptions in such cases.
is that racial decrimination? or what!! just coz where are Maltese we can not have EU rights
lovely
I think who worked out the formulas skipped the below -
I am no fool + this is no green = Bye bye my next vote
I'm good @ maths, am I?
I would have expected a public transport reform first and than I would be able to scrap my car.
Why do we always do things the wrong way round? Why does it have to take another year to impose some discipline on bus schedules? Why are bus expected times of arrival not printed on every bus shelter like we have abroad? Are we expecting too much?
Are we still a part of the EU?
Well sure you did and a couple of hundreds others. The issue is will you still feel the same come next election or would you put your trust again in the decievers.
I pity those who have to carry the share of the costs and havent voted PN. It is a shame that in a democracy today you end up not believing promises and just vote eyes closed. Because whoever is elected will make damn sure not to keep its promises with numerous excuses.
Let the situation be, if u cannot pay, just deregister the car, go on foot or go by bus - full stop. It is healthier to the environment and the lard tyres on your tummy. When will you understand that moaning here will bring nothing else than an idiotic laugh from the powers that are? they have their job guaranteed for the next 6 years and they have also a very healthy increase too. No you common man, u must suffer and u shall suffer.
Stop moaning and pay the due taxes. If u cannot afford it file for private bankruptcy...full stop.
Sorry but I assure you that in 4 yrs time with the last nice "looking" budget before the election you will change your mind and mark again PN on that ballot vote.
I am a student and last summer I tried earning some money to cover up my car's licence, insurance, expenses etc. for a year. Unfortunately I had my car totally destroyed by a hit and run where I left it parked. So now I am trying to buy a second hand car again. It is very difficult to find a suitable car with the petty budget students have and to mess up even more the situation now all of those who own an old and large diesel engine car will try buying a small second hand car making my search much more hopeless cause small petrol engine cars' price will increase and I will have to keep on using my dad's 15yr old Lada 1.5 petrol van with the licence increased from €90 to €160 !! Thanks prime ministers Gatt and Fenech ! Par idejn sodi e!
Fact: Wages in Denmark are much higher than the Maltese ones
Fact: A 4x4 is needed to be able to access many streets and roads in Malta not taking into account the many floodings in many roads making them also inaccessible to 4x4.
Fact: a 4x4 is the safest car to drive in Malta.
Fact: Buses pollute much more than any civilian car on the road
Fact: Bicycles in Malta? We ain't flat Holland and many of our roads are deathtraps for anyone travelling on two wheels.
In my opinion this government should take the bull by the horns and take the major task of building an underground subway grid. Its not impossible to do and would create thousands of jobs for workers. Drydocks anyone?
Roads should be then permanently fixed or upgraded. Only then would these now scandalous taxes be justified. I also hope that the various ministers will sell there big BMWs for smart cars.
Good article . I agree with you 100%. I have a family too and I too cannot afford to buy new cars.
The PN are Masters at the game....dupe them, dupe them and then dupe them some more!
For thos whiners who swear they won't vote PN anymore....you made your bed now lie in it. The unfortunate thing is that the rest of us that DID NOT will have to enjoy your Government's "benevolence" with you!
See ya in Valletta!
Iva nhar il-Ħadd ser insemmu leħinna! Issa jekk ma jagħmel widnejh ma l-art u jismagħna Gonzi affari tiegħu.
In other european contries they have grades and different brands for petrol and diesel.
Also what about goverment owned vehicles are they going to be changed after seven years??
I have been stuck with my car tax being doubled. A pick up in perfectly good condition and having passed vrt and emmission tests. With a basic income and a family of three children and ever increasing bills. I , along with many others, cant afford to buy an brand new car. We are a one car family, my husband travels to work on a motorcycle but i am sure the powers that be would have something to say if i tried to run all of my three children around to their various activities on the back of a motorbike!!! Thank you Mr Gonzi for putting hard working, struggling families in an even deeper hole than ever. I would like to see him support and feed a family of 5, pay a house loan and bills, buy school supplies and cover medical costs on the pay packet of a Mr Average.
However all is not lost ! People could always start to insure their car on a fully comprehensive basis and then drive it into a wall or into the sea to ensure a total loss - at least then they could be pretty sure of getting at least some of their hard-earned capital back !
Sure enough, it wouldn't do the environment much good, but heck I am sure most of us have heard of Maslow's hierarchy of needs - yes the one which says that survival comes first, always.
I bought a new 1.9 D4D Toyota 5 years ago and paid the extra reg tax that goes with diesel. Now for those who know these things, this is one of the most environmentally friendly diesels around; indeed Toyota are obsessed with the environment. Now in just 1 or 2 years, up goes my license, my cars resale value drops to almost zero (almost because it is still a Toyota at the end of the day). However I doubt any dealer will take it or any car importer will want it in part-exchange. So that's my capital gone, as is the case for all those having a 3, 4, 5, 6+ year car.
Now have to either adopt the new methodology of changing our car every 5-6 years (although the salary structure has not changed to accomodate this), or risk using a motorbike. As a parent I have struggled to keep my son from ever buying a motorbike because it is like having a deathwish here in malta, and now along comes the government to undo all my efforts! Thanks a lot!
But the road tax for electric bikes is also set to increase after 4 years. This proves beyond doubt that this is purely a tax raising exercise.
Ahleb Ton!
I perfectly agree with you! I have an 8 yr old diesel car in mint condition which will now cost me an additional 100euros or more to keep it on the road.
This just doesn't make sense when the WORST polluters - our very own buses - have been spared the burden of additional expenses. Simply outrageous!!! And they want us to believe all this is being done in the name of the environment.
And to cap it all, we're now also burdened with higher costs at the pump when the oil price is hitting record lows. I simply quit trying to understand the logic behind this.
Mr Goverment - Stop treating us like fools as we're not.
Like we have water, EU membership, toothpaste, Smart City, Airport, Freeport, Hospital, Power Station, Telecommunications, liberalised broadcasting, stipends, MCAST, Uni . . .
We had an airport, a freeport, a hospital, a powerstation, telemalta, enemalta, seamalta, midmed bank, stipends, University, and fellenberg and technical institute too, that was under labour govt. now instead of one powerstation polluting the air we have 2, instead of telemalta we have GO, instead of enemalta we have a non sustainable organasation because of mismanagment by your govt. instead of fellenberg and technical institute we have MCAST, instead of Mid Med bank we have HSBC (mind you mid med bank was sold for a miser sum instead of sea malta oops we have nothing! Chris Ripard doesn't remember when the PN voted against childrens allownance and against pension for our old folk, doesn't remember that when the MLP administration took office after the PN there wasn't even any money left to pay the govt. workers. that is a definition of a third world country Chris when the govt. doesn't even have money to pay his own workers,We're getting back to that state slowly but surely.
It must be so easy for those responsabile to sit on their comfortable office chair and take such decisions.
Why is it that the common man always loses!
When you run out of plausible excuses, invoke pollution, safetly or national security. You may then break every rule in the book with impunity.
It is abundantly clear that this was simply a revenue raising exercise. To reduce pollution you build efficient roads to eliminate traffic jams. Stop start driving and ridiculously low speed limits both result in more pollution.
The reasons being put forward to extract more taxes are becoming increasingly fantastical. I mean, the length of the car!! Or the age irrespective of its mechanical condition!!
A dishonest exercise through and through.
Like you I also am a student. If you have seen your licence increase it must mean that you have some big mean machine. If so you what you really should be asking yourself is what were you thinking when you bought the thing in the first place!
I have a medium sized hatchback, and pay my own fuel and insurance, and all the repairs that a car requires. I can only but be thankful for not graduating and spending the first 5 years paying the loan I had otherwise needed to take to pay tuition fees!
We get Euro 465 as a smart card grant, and a minimum (depending on one's course) of Euro86 a month as stipend. Isn't that enough?
The BEST system I have ever seen in terms of road tax is when it is paid for at the pump.
Basically, road tax is added to the price of fuel. So no more display on the window. The more you use the road, the more you pay. It is fair. My uncle has a Jaguar that he uses once a week. Why should he pay more than the regular commuter who is using their car every day when he is only using the roads 1 hour a week? Just because he always wanted to own a Jag and finally bought a second hand one in retirement?
Pay at the pump is the only fair distribution of road tax. The more you use, the more you pay.
Wardens can spend their time looking at other things rather than through our car windows!
The whole road tax department can be made redundant saving the government a lot of money.
Streamline the business, don't complicate it. Think out of the box.
Missejna l-qiegh issa.
Don't you know that there was a tram system in Malta way back? My late grandfather used to drive one, may he rest in peace.
Today's technology permits trackless trams. Know the facts before you write. I think it is you who are hair brained. Get updated; visit: http://en.wikipedia.org/wiki/Trolleybus
That should at least rid our streets of a lot of emissions and noises
issa kulhadd ferhan wara 20 sena ta gvern nazzjonalista (flimkien kollox possibli.)biz-zejt jorhos u l-elettriku u l-fuel joghlew !!!. Tahlux qallulna. ahjar qalulna biex nissikkaw ic-cintorin kif kien qalilna 25 sena ilu Mintoff. Dalwaqt jaqtawlna nifisna.
Sussidji jridu jispiccaw qalulna. Ma tahsbux li bniedem bsahhtu qieghed jissusidja li l-marid etc? is-sena d-diehla is-sahha jmiss?
I want to reassure you that to keep my car I work every summer, but now i am not so sure that i will be able to afford it anymore since my licence was increased by a 'marginal increase' of 130% (one hundred and thirty % if you thought i had a missprint in my number). When I mentioned the stipend it was only to show a little of comparison about what we have to pay. And please now we are living in 2008 and not in the past. Maybe yes, in your days you didnt afford a car but also 20 years ago no 14-year olds had a mobile phone because they did not afford it so the comparisons with the past i think are not so suitable. I also love the environment, but I do not think that such marginal (130%) rises in our licences (not only students but this also applies to families, pensioners etc etc.) where fair, especially when the economy needs to be boosted by increasing the purchasing power of the people. It surely didn't increase mine!!
How rich students are this day! When I was a university student I used to go by bus as I could not afford a car with all its expenses. I thought that stipends should be spent on University - course related items. If I were you I wouldn't even mention that you are spending your stipend in that manner as it hurts to see and hear that my taxes are being squandered in such a manner. This was a great budget for the environmentally conscious!!
I will now pay 23 Euros more annually so I'd rather keep my 7 yr old smokey diesel than buy a new clearner car. I can't see any green side to this end!
Who knows, we might out-do` the GB team in the Olympics one day, or organise the Tour De Malte.
"The people should force the government to resign."
This is a democracy. The party in government has relative majority. The Labour "govenment" between 1981 and 1986 was a minority government (and therefore illegitimate). Did you say the same words back then, if you were around?
"I hope that next Sunday everyone joins the protest or manifestation call it whatever you want."
Were you around in 1997? The price of oil was only $12 back then, and the then Labour Government did not even have the guts to publish the commertial W&E tariffs for months even until the early election. The GWU did not say a word, and J.Muscat hailed that budget.
As a student, can please Dr. Gonzi explain to me how am I going to cope when I see that I have to pay 53.3% of my yearly stipend as my yearly car licence (excluding insurance, rise in diesel price etc etc). At least he should be so kind that he buys a 2 seater bicycle so that when in the morning he's going to the parliament with his bike, he gives me a lift to university. Oh sorry, I forgot, the MPs still have their large cars with powerful (20 turbo diesel or more) engines, or they are going to switch to eco-friendly cars now? I'm afraid not, because their licence is paid from the people's taxes!! But their carbon emissions do not harm the environment, our does!!
It just goes to show that `where ignorance is bliss, it`s folly to be wise`.
Yes u r very right!
for 1.8 to 2.0 ltr cars the tax before was 11058 euros including the illegal 18% VAT. removing the vat the actual registration tax would have been 9370 euros...and Magic magic the new registration tax is 9946 euros. So actually remoing the Vat form the original RegTax we end up magic magic with an increased registration tax and increased road licence. Hurray Hurray.
The people should force the government to resign. He has clearly shown double face more than enough now. He was elected on the basis of "finanzi fis-sod" and not on the basis of this mess that he is trying to fix. I hope that next Sunday everyone joins the protest or manifestation call it whatever you want.
If this is so, were is the tax reduction? Before one had to pay Lm4200 + VAT (were VAT charged on another tax is illigal) which comes to Lm 4950. Converting these values to Euros they are roughly equivalent.
So basically VAT was removed, had to be removed anyway, registration tax remained the same (so were is the tax reduction) and instead Licence Road was increased!! WOW!!
Welldone...
you are always free to go back to the UK if things here are so bad.
It will be the same next time round. You will see a disastrous 4 years and then on the last budget before the next election u will get a few euros back, enough to buy you a napkin to cry on. Now swallow your pride and ignorance and accept the new taxes. I only feel pity for those who either could not vote or did not vote for the government, since they have to share the brundt of the rest who did.
BTW, in 5 years time the PN will win the GE again. Because we maltese were always ignorance and driven by hatred and not common sense for the common good. And we will always stay like that. So enough of complaints, just pay the taxes and shut up!!! I am fed up hearing these complaints everytime
Buy yourself a bike!
All Maltese gemgem
All of you who are saying that next time round you will not vote PN. On February, 5 weeks before the election, PN were 24000 votes less than the MLP, but the PN won the election.
You will vote PN next time, mark my words.
Only Dr Gonzi is credible.
This besides the fact that probably as years pass by, more revenue will be stolen form our pockets. But we have the choice hux, either we pay new registration tax every five years or pay more in licence. As I said the choice is ours!!!!
"Tax on second hand vehicles will be determined on the basis of their commercial value but there will be a high minimum tax on cars older than five years manufactured outside the EU, to discourage their importation."
Are you serious??? This is utter ignorance! what if I would prefer to purchase a car from outside the EU ? What is the difference... are EU manufactured cars superior ??
And what about public transport, did you forget these Cowboy Austin ?? It was a good idea to leave these out, they're only the biggest source of pollution on Maltese roads.... or maybe you're really afraid of them ?
'Par Idejn Sodi' LOOOOLLLLL
yes, in Malta our government have the FREEDOM to do whatever he wants to us citizens, and its useless for us to think otherwise, we have to pay :
for the ministers cars (which are all brand new and having big engines);
(Ups.....and what about the Govt. Departemental cars...does govt pay registration tax???))
to compensate for the pollution of buses, minibuses and trailers even if we never use them:
to pay more for fuel, when international prices are going down;
and all of this because we are living in a DEMOCRACY !!!
We use to laugh when Mintoff used to say: "Ahleb Guz!!"........but we have to adapt this to today's situation
In Malta pro-EU and govt are saying that we are to pay taxes similar to our EU Compatriots.....what about our wages but??? do we have the same wages??
ONLY IN MALTA!!!
If you want to call it partisan, feel free. I reiterate my view and it's objective.
I have recently written in the 'papers to express the view that cars cost far too much here, but has anyone said how much they'll cost from Jan. 2009? No. So, isn't it a little partisan to comment before having facts? In 1988, when I bought my first new car (a Yugo 45A) it cost Lm2000 - about 9 months' salary, now a better car, such as an Atos, costs Lm4325 - about 5 months' salary and it's going DOWN in January, while pay goes up. Senza partisanship, please - I ask you, am I better off than before? Certainly! Could I be better off still? Probably, but unlikely to happen under MLP.
And, whilst I don't like paying more, the increases in road-tax seem well-worth the improvement in air-quality they will cause, if they drive us (intended) to newer cars.
I cannot believe i have moved to Malta and now paying more for petrol than i do in the UK,I CANNOT BELIEVE THE WAY YOUR GOVERNMENT GETS AWAY WITH THE INCREASES IT IMPOSES.
From your comments you really sound partisan.
The things you mentioned are all good things, but that's the past. We are now talking about this term and this budget, which frankly is a very bad one, full of unfulfilled promises and blatant lies. However, I assume that people like you will always vote their favourite party no matter what.
Can you at least focus on the topic? Cars are far too expensive in Malta when compared to other EU states that have higher wages. These EU states apart from having much cheaper cars and higher wages also offer incentives for changing from an old to a new car and have schemes for phasing out old cars. That's what we need if we are going to change cars every 7 years.
I am a retired pensioner and with the
new Budget I shall be unable to keep
and afford my 5 year old small car due
to higher fuel/licence and various other taxes.
Please advise me what to do.....maybe use a bike,
but my health does not allow this. Tks
For cars already on the road, the vehicle licence should start rising for cars older than 10 years not 7. (wages in Malta won't allow this) Or better still rise should not be flat on all cars over 7 / 10 years, but depends how many years above 7 / 10 years. Why should someone with 7 year old car pay same rise as someone with a more polluting 15 year car (even same cc)!!
How can you seriously think this? How should we pay the new taxes on our old cars, with toothpaste??
I am a student and surely don't have enough money to change a car every 5yrs. If cars were as cheap as in other EU countries with the price of one car I would buy 3 and be ok for 15yrs. But this is not the case.
Why should we pay sky high taxes on our 7yr old cars and buy energy efficient car (don't know where we should find the money), when our dear Dr.Gonzi enjoys a BMW 7series 20 turbo diesel car? Is this fair?
Please open your eyes and look around you I don't think that a dry docks worker or a pensioner and many more will be saved by smart city or by the liberalised broadcasting!
He controls your life, day in day out. If you are a normal person, who goes about your daily life as it should be, I'm afraid to say, you're buggered.
What really is astonishing about this reaction is that many are not aware that these car ownership cost structures are similar to structures elsewhere in Europe. You pay less capital but more yearly expenses. For example how many local new car buyers ask about Euro NCAP classification since elsewhere this has a heavy impact on yearly maintenance costs and resale value - Bet no one does but will start doing. Too many of us are confined to the perimeter of this tiny land.
Not only that , but as far as i can remember , the "Minimum Value" had to be removed also as it was considered grossly unfair .
Our MEP's should fight for our rights in the EU parliment . Any MEP that can help us out here gets my vote , regardless of their political part .
As for the government , I come from a Nationalist voting family , I have always voted Nationalist , but believe me , and i am not the only one saying this , I shall NOT be voting for them in the next election and i regret voting for them in the last election .
This time the Nationalists have overstepped the mark
I leave it to those who own cars and other stuff.
Blind kitten? That's your opinion and you're welcome to it because we have democracy (now).
Like we have water, EU membership, toothpaste, Smart City, Airport, Freeport, Hospital, Power Station, Telecommunications, liberalised broadcasting, stipends, MCAST, Uni . . .
You have to be blind not to have seen the Third World mess we were in before PN saved us.
Er,,, because they pollute more? Just a guess.
And yes, air pollution in Malta is quite bad. I think the government should have permitted guided missiles for a selected group of drivers to use on the half-wits who've been mucking about with their crappy diesel engine and emit a cloud of black smoke that the average steam locomotive would have been envious of.
Change my car every 7 years? With below EU average salary and above EU avergage new car costs? Truly a miracle needs to happen.....
SO WHY HAVE THE BUSES AND TRAILERS HAVE EXEMPTED!!!??
Also, the dear minister removed VAT from registration tax.. found to be illegal by EU laws.... WHAT ABOUT THOSE WHO PAID FOR THIS ILLEGAL FEE SINCE WE JOINED THE EU??
last election i made the wrong decision.. this time i won't..
I was waiting for the reform to buy my car however now I am even more screwed than ever! I father a young family! How will I make them all fit in a small car! Why Maltese people are not treated the same as other EU citizens? We joined EU with the sole promise of “FREEDOM OF ASSETS”
But it seems I will have to pay more money for licences now???Unless I trade in my practically new car for another new one???
What about people who work hard to earn more money and enjoy life.
Why should they pay more if they can own a sports car or a luxury car?
by applying all these taxes the govt is basically telling me to either under declare my income or bum off social benefits as many ppl on the island do.
in my opinion if you are self sufficient then you should be taxed less.... otherwise it does not promote work.
what am i going to do with with EUR 215 more in hand a year? spend it on my increased license fee ofcourse....
what am i going to do with my eur4 a week increase ? spend it on higher fuel costs ofcourse.....
what has the government done to entice me to buy a new car?
i worked hard to get where i am today... and it seems that things will only get harder.
i really feel for those who have a house loan, car loan, overdraft, children and utility bills to pay and cannot enjoy their hard earned money.
I remeber those time.....in those times people could afford to buy and keep a car, even two. People had money. WAIT AND SEE WHAT IS GOING TO HAPPEN. I bet you have not realised what the new tariffs are have you? Still a blind kitten ....eh
"I wonder how, for example a Gov employee, with a 750 euro a month wage can buy a new car every 6/7 years"
Let alone pensioners!
Well dear minister, when you give a rise much more than a mere 4 euro a week, maybe we will start buying new vehicles more often...
Trucks used to transport trailers were exempted from the new licence system. Dear Minister, you should know that most of these trucks are mostly bought from the UK after years of usage there.....but it seems that somehow (a miracle?) their level of emission remains environmentally friendly.....or you're afraid that if you not exempt these people they will go on the street and put Malta on halt??
Very promising indeed!
Such issues reflect the worrying state the Government and Malta are in.