“More than 2,500 people sign petition to reduce vehicle taxation”

“More than 2,500 people have signed the petition to reduce vehicle taxation.

This administration is supposed to be a government that listens. Let us see if this petition will fall on deaf ears!

Vehicle taxation in Malta as a percentage of total taxation is the highest in the EU, according to the EU’s own publication “Taxation trends in the EU”, (Table 70, page 237)

Vehicle registration tax is very high in Malta in certain cases. 

In 2005, the European Commission had proposed the abolition of vehicle registration tax. Subsequently, in those cases where vehicle registration tax is not abolished, the European Commission had recommended that the tax be not more than 10% of the pre-tax price of the vehicle.

When is Malta going to take note of the European Commission’s proposals, and act upon them?

Similarly, the annual circulation licence fee (tax) or vehicle licence is also very high in Malta in certain cases.

Given that the government is boasting that it is making a surplus, and that the economy is doing well, is it not possible for the annual circulation tax in Malta to be lowered, especially in those cases where it is very high? Is it not possible for part of the revenue collected from the Individual Investor Programme (IIP) to offset part of the annual circulation licence tax?

There is a sector of the Maltese population – the retired people – that do not use their private vehicles on a regular and frequent basis, because they do not go to work every day. These people are paying a very high rate of tax for the use of their vehicles!

It is time that vehicle taxation in Malta be reduced, if necessary in stages.”

Alfred A. Farrugia