Malta - British Expat Forum

http://www.timesofmalta.com/articles/view/20111027/local/eu-ends-malta-proceedings-on-vehicle-registration-tax.391068

The European Commission has formally closed infringement proceedings against Malta concerning the registration tax on second hand vehicles that originate from other Member States.

"Following a thorough analysis of the legal issues at stake in this case, and on the basis of all the information it had gathered, the Commission has found that the registration tax applied in Malta is in line with EU law,"

Quote:

the registration tax applied in Malta is in line with EU law

Unfortunately that appears to be true, but being legally right doesn't make it morally right.

Still pissed off that it would have cost me 9,000euro to register a 2002 Shogun from UK to Malta..... and ONLY 50-100stg to register the same vehicle from Malta to UK.

oh. poo!

The road tax is another piss take here, twice as much as U/K for driving on these roads, what a joke.

but, on the upside, we don't pay any council tax, so something has got to contribute to the roads, no?

That's what the road fund licence and whatever the Maltese equivalent is called is for, but what's needed is for someone with very deep pockets to challenge the registration tax in Europe. On the other hand, with approximately the same number of registered vehicles as population perhaps a deterrent is needed?

What could be interesting is forthcoming EU legislation about maximum ages of vehicles as a badly thought out attempt to takle polution in cities, though it's all a bit vague as at present they're only testing it out by proposing banning motorcycles over seven years old (advice to politicians: done mess with biker gangs), but imagine banning cars over perhaps ten years old in Malta and how the law of unintended consequences might apply?

If they ban cars over ten years old i for one will be on my bike, oh no forgot that's older than the cars. Better send me a council tax bill then. I would be happy to contribute to the council's running costs.

"proposing banning motorcycles over seven years old "- my motorbike is nearly 30 years old, and done less than 30,000 km - many mopeds get less than 1,000 km a year usage, so that would mean scrapping them when they've done less than 5,000 miles - not very eco friendly

If they took mileage and emisions into consideration instead of age i would be paying a fraction of the road tax, would be nice to get one more v.r.t. through on the Skoda so i can celebrate it's 18th birthday next year.

JJ wrote:That's what the road fund licence and whatever the Maltese equivalent is called is for

I don't think that's actually the case in the UK, JJ, even if it feels as if it should be. The "road fund licence" or "road tax" is a misnomer - the tax collected when you buy your tax disc is simply called Vehicle Excise Duty. In other words, it's a tax on car ownership rather than on road use.

There's no legal obligation on the government to spend it on the upkeep of roads - it goes into the overall budget. And most of the road network (by length) is a matter for local authorities rather than central government anyway. Of course local authorities get some of their funding from central government, but it's a block grant and the source of the money isn't identifiable by tax.

It's much the same as the excise duty paid on a packet of fags or a bottle of Scotch. The government takes the money, but is under no obligation to put it into mitigating any ill-effects of fags and booze. (Or indeed into the upkeep of distilleries and tobacconists. )

[Edit: I've since discovered that JJ used to be right - the Finance Act implementing the 1910 budget did indeed create a Road Fund tax and ring-fenced the money for road upkeep. The Road Fund and the ring-fencing were abolished in 1937, though.]

That's true Dave, but at least the UK and rest of Europe build decent roads and maintain them.

From what I see the Maltese Govt takes all this money and the roads aren't fit to walk on, let alone drive on. Admittedly there are a few newer roads, better built, but those are EU funded projects.

I've sold my 2002 Shogun to a mate who did pay the import/registration tax. His road fund licence will rise yearly until it hits 1700euro per annum! Now I'm driving an older Landrover, definitely not as eco friendly, but under the 'old' Maltese system the road tax is capped at 550euro.

So, we're penalised financially by wanting to bring in a newer, cleaner, vehicle, probably having to buy an older Maltese one instead, and now the EU want to ban older vehicles!!!

Horses..carts...and stable doors!!

pumabob wrote: Horses..carts...

problem is, not allowed on the ferry

I don't see what the problem is on this. What's wrong with countries setting taxes to control vehicle ownership in their own domain? Admittedly, the Maltese government make a cock of it, as they seem to do most things, but the principle is workable.

Maybe they should do the same as the Singaporeans (where a smallish 5 year old car will set you back around 25k EUR) and have an entitlement tax that only covers for the first 10 years of the vehicles life.

Re the state of the roads, good ones just invite the local drivers to drive more recklessly, just go a bit slower!!

hi everyone, just looking through the notes on importing my car here [great information thanks, although looks quite daunting!] and i understand the bit about the eu dropping their objections about maltese first registration tax [presumably on 'environmental' grounds?] but what i can't understand is how they can levy an additional 'vat' charge [thats what it says on the tm website] for vehicles under 6months old.......surely under eu law any goods that have been purchased and charged at local vat at point of sale cannot be charged again?

I think the double VAT issue is/has already been challenged in the EU courts.

The TM website isn't always up to date, so might be worth checking a bit further ref the 6 month old rules.