The first refund payments for VAT paid on vehicle registration tax will be issued in April, Transport Minister Joe Mizzi announced today. Some 40,000 car and motorcycle drivers are entitled to the refund.

Speaking at a press conference Mr Mizzi said that people who bought a car or motorcycle between 1 May 2004 and 31 December 2008 are eligible. Drivers will have to apply through Transport Malta and, pending approval, the first payments will be issued in April. The refund will be paid over seven years, with drivers receiving a seventh of the due amount every year.

Finance Minister Edward Scicluna told the press that the government expected to fork out €25 to €30 million on the scheme and had allocated €3.5 million so that the first payments could be made. Professor Scicluna insisted that this initiative will not negatively affect the national budget. The government decided to launch this scheme in the first year of the legislature. It had promised the refunds and it will deliver.

Parliamentary Secretary for Justice Owen Bonnici said that the PL government is delivering on yet another electoral pledge. He said that a collective court case against the government will be dropped as applicants will get their money back through this scheme. The government will also cover all of their legal costs – amounting to around €3,000 - because it was unfair that they had to resort to a court case. Dr Bonnici said that the tax was unjust and the government is giving the people their money back.

 

Eligible drivers to receive letter from TM

Mr Mizzi said that the EU had declared the tax on registration to be illegal back in 2009, but the previous administration had refused to pay the money back and went as far as to accuse the PL of trying to buy votes. But unlike the PN, the government is keeping its promise.

Transport Malta will be sending a letter to all eligible owners informing them of the amount payable under this scheme in the first week of February.

Refunds will only be given to the original buyers of the vehicles and government vehicles, taxis and commercial vehicles are not eligible. Similarly, heirs of deceased people are not eligible for refund.

This will not be on a first come first served basis. More than 40,000 drivers are eligible for a refund with around 60% being eligible for a refund of €500 to €1,000. The average payment will be €770. People who no longer own the cars that they purchased between 2004 and 2008 are still entitled to the refund.

Licences vehicle dealers and importers are not eligible unless they can prove that the vehicle was registered in their name and was intended for personal use.

The public can obtain more information by calling on a dedicated freephone number 80072373 or by email on [email protected]

 

PL statement

In a statement the PL said that what was described by the PN as a false promise to gain votes has become reality.

Joseph Muscat had insisted from day one that poeple who paid VAT on registration should be refunded, but former Finance Minister Tonio Fenech had insisted that no one was entitled to get his money back.

The government led by Dr Muscat showed that this promise will be kept. This is a government that delivers.