Car scrapping scheme extended by 1,000 cars

Finance Minister Tonio Fenech said the car scrapping scheme had been a success, and in just under six months, the capping of 2,000 cars had been reached.

“The scheme was snatched up and we felt that we should consider its extension even because the budget allocated for the scheme allows us to do so,” he said. He added that the scheme had been a success in the shift seen from the used to the new cars on the road.

The scheme is now extended to an extra 1,000 cars, or until November 15. Fenech added that he was hoping for more people to opt for environmentally friendly cars.

The scheme is targeted at private cars not less than 10 years since their manufacturing date. When buying a brand new car which has never been registered in any other country, applicants will be given a rebate of 15.25% on the cost, insurance and freight (CIF) of the new car.

The new car must come with an engine marked Euro 4 or Euro 5, must not exceed the 4.46m in length and must not be used for commercial reasons.

The total budget allocated for the scheme had been of €2.5 million but only half of that amount was spent. According to Fenech, buyers had opted for smaller cars, and the average reimbursment from the scrapping scheme was of €900 rather than the maximum of €2,000.

Speaking on another incentive, the car registration tax scheme, Fenech said 749 persons had applied. The scheme, initiated in 2009 and consulted the year before, had allowed for new cars purchased in 2008 to participate, since in 2009, tax on the registration of cars had been decreased significantly.

The reinbursment was to be given back by deducting amounts from the licence payment and would have spanned over some 10 years.

“However, since the total credit to be paid back to those who applied was less than €1 million, government has decided to close that balance in one pay and consequently those who had applied will receive a check directly at home with the outstanding balance rather than carrying out through the years.”