'Scrapping scheme' capped at 2,000 cars

Addressing a press conference, Finance Minister Tonio Fenech announced that the scheme will start as from next Monday, 15 November.

“This scheme is an incentive to urge members of the public to buy brand new cars, which are small, efficient with cleaner emissions,” Fenech said. “This scheme is being worked out together with Wasteserv.”

Fenech explained that the new car must be bought after November 15, and if the 2,000 cars are not exceeded, the scheme will stop on November 12, 2011.

If the amount is reached beforehand, the scheme will stop there.

“The scheme is on a first-come-first-served basis,” Fenech said.

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 and must not exceed the 4.46m in length,” Fenech said. “The car must not be used for commercial reasons.”

The new car must also have an engine which does not exceed the 150g/km in emission.

Those who scrapped their car before this date are not eligible for this scheme. However, those who are first-time buyers can benefit up to €1,000, or arrange with their dealer to scrap one of his cars.

“Government will take the remaining €1,000 and allocate them to a special fund for the cars which will be scrapped,” the Finance Minister sustained.

For applicants to apply to the car scrapping scheme, they first have to obtain a certificate from Transport Malta which states the car has been deregistered from the Authority and all licence arrears and contraventions have been paid.

“Applicants must then take their car to Tar-Rabba scrapyard, where it will issue a certificate confirming the car will be permanently scrapped and off the road,” Fenech explained.

The Minister said that Tar-Rabba is the only licenced scrapyard in Malta which is fully equipped and has all the necessary facilities to scrap the cars and export them.