Brussels closes infringement on registration tax levied on used cars

New registration system replaced discriminatory used car registration tax.

The European Commission has formally adopted its decision to close infringement proceedings against Malta concerning the old registration tax on second hand vehicles that originate from other Member States.

The EC said that the registration tax applied in Malta is in line with EU law.

During this infringement procedure, the Commission concluded that the new registration tax legislation, introduced in 2009 for private vehicles and 2010 for commercial vehicles, was fully in line with EU legal principles as it takes the actual value of a vehicle fully into account at the moment of registration, applying depreciation in a transparent manner.

The new registration tax system is levied on cars according to their size and their emission levels, replacing the old system that levied a mark-up on the cost-insurance-freight value according the engine capacity.

The old system was believed to have discriminatory effect with respect to motor vehicles coming from the other Member States. This was because the value of a used car import was not determined by the cost-insurance-freight value but by value determined by the Maltese authorities.

Differently from new motor vehicles, there was a minimum amount of tax fixed only for used cars. Even if the application of the tax rate to the taxable value determined by the authorities resulted in a smaller amount than the fixed minimum, the latter prevailed.

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Before the EU membership referendum campaign, I already ahd a very clear idea what it meant being part of the EU. I used to meet alot of foreigners, especially British people, who always told me that the EU is a 'club for wealty people'! And it's being proven each and every day since 1st may 2004! They dictate from Brussels, and we just have to OBEY, or else we will face heavy fines! That's what it means being a member of the EU at the end of the day. All other opinions about benefits from the EU is just BULLSHIT! I can't understand how PN symapthisers still think that we are a 'sovereign state'. I just wonder if they really know the right meaning of the word 'SOVEREIGN'! And I keep on wonder, and wonder............!
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Our Parliament has been reduced to less than a local council and our politicians to less than local counselors. ** This is what eu membership means apart form the disaster it has brought upon us and Malta.
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Ian George Walker
Before the comments start flying, please note this is a completely different matter to the VAT unlawfully charged on imported second-hand cars for which the LP is suing the government.
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Why do we need a Goverment, when all owr jaws are made in Brussels.