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Maltese Prime Minister To Revise Eco-Friendly Vehicle Tax,
by Robert Lee, Tax-News.com, London
Tuesday, November 18, 2008
Maltese Prime Minister Lawrence Gonzi has spoken of proposals to amend certain sections of the
draft Maltese 2009 budget after protests from the public and opposition parties concerning new car tax measures.
Many members of the Maltese public felt the incidence of the proposed vehicle
circulation tax was unfair on those using family vehicles as they carried the
same levy as those driving luxury cars. The circulation tax was originally proposed
to tackle those using uneconomical cars by introducing a progressive tax system
to tax the most unecologically friendly vehicle users most.
Gonzi announced that car registration costs of new petrol 1300cc cars would
now be almost half of what they were before, while the saving on registration
for petrol cars with engines of between 1500-1700cc would amount to 30% less
than previously.
However, following complaints the Prime Minister has agreed that the law on
diesel family cars would be amended. Under the former proposals, diesel family
cars would have been taxed on a par with less efficient luxury cars because they
were seen as environmentally unfriendly. Dr Gonzi said that the government had
decided to review the new licence costs for certain diesel cars, to support
those who bought them 10-15 years ago when the diesel price was substantially
lower than that of petrol.
The government had also received complaints from importers of second hand cars,
and Gonzi has agreed to introduce transitional provisions for the new tax law.
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