Euro parliamentarian Joseph Muscat, one of the contenders for the Labour leadership post, welcomed the government’s plans to change the car registration system, as it has informed the European Commission.

The changes needed include the removal of the 18 per cent VAT on registration tax, which today goes up to as high as 65 per cent, he said. The change would be introduced after he himself had applied to the EC, when it was obvious that the system in Malta was in breach of European rules.

Dr Muscat, vice-president of the EP’s economic and monetary affairs commission, said that apart from this, the government was also saying that it would replace the entire system to one based on emissions. This has been done after he had, for the last three years, brought pressure – which had been resisted – to bear on the government.

While looking forward to seeing the publication of the government’s plans and to public consultation, Dr Muscat said, he would also be waiting to see what steps the government would be taking to remedy the situation of those who had already paid the unjustified tax.