BUDGET 2016 – Vehicle Registration and Licensing Measures
Transport Malta notifies that the below Budget measures will be applicable as of the 1st January 2016.
Refund of the VAT paid on Registration Tax for vehicles registered between 1st January and 31st December 2005
Government shall once again refund the full amount of VAT paid on registration tax, less the amount of grant paid during 2014 to vehicle owners who were eligible for the grant and had a vehicle registered between the 1st January and 31st December 2005. Payment will be issued in 2015 in full and final settlement. The same process is to be adopted for the following years until all payments up till the end of 2008 are settled.
A letter will be sent to all applicants who were eligible for the grant. Further details of this measure will be announced later on.
Flat annual licence fee of €10 for all Motorcycles with a cubic capacity lower than 125cc
The Annual Circulation fee for Motorcycles with a cubic capacity lower than 125cc will amount to a flat rate of €10.
VRT each year for vehicles clogging an odometer of over 160,000 km
M1 and N1 vehicles clogging an odometer of over 160,000 km will be subject to a VRT each year and not biennially and this in line with Article 5 of the VRT Directive.
Conversion of vehicles to Auto-gas
The scheme currently available to convert M1 (passenger vehicles) and N1 (goods carrying vehicles up to 3,500kg) to Autogas will be extended in 2016, offering a one time grant of €200 and including the reduction of the CO2 emission levels by 10%.
Furthermore we shall be Introducing a new grant of €700 for the conversion of passenger and goods carrying vehicles namely Category N2, N3, M2 and M3, coaches and trucks. The conversion is for a system called Dual Fuel (DF) which uses both diesel and LPG at the same time.
Removal of Registration Tax for Electric Motorcycles
Electric motorcycles shall be exempt from the payment of registration tax.
Renewal of Scrappage scheme
The current scrappage scheme will be extended during 2016, whereby a one-time grant will be given to every person who scraps an M1 (passenger vehicle) with an age of 10 years or more and registers a New M1 (passenger vehicle) with a CO2 of not more than 130g/km and having a length of not more than 4,460mm. The grant will be on a first come first served basis and will be higher for those vehicles which pollute the least, as follows:
Vehicles registered under this scheme must be used for private use only, and the the vehicles being deregistered/scrapped must be scrapped at an authorised destruction facility. The scheme will be applicable for vehicles registered as of the 1st December 2015, details will be announced in the coming weeks.
b) Purchase of Electric Vehicles by Private individuals, Registered NGOs and Private Companies
A grant of:
a) €7,000 upon registering a new Battery Electric M1 and N1 vehicles;
b) €4,000 upon registering a new or used Battery Electric M1 and N1 vehicles (without scrapping
c) €2,000 upon registering a new or used Battery Electric quadricycle (without scrapping another
d) €3,000 upon registering a new (plug in Hybrid Electric vehicles) with CO2 emissions 1-50g/km
e) €2,000 upon registering a new hybrid vehicle with CO2 emissions between 50-65 g/km.
The grants above for Items A, D and E only apply when another vehicle with an internal combustion engine having at least 10 years from the year of its manufacture is de-registered and scrapped at an authorised destruction facility.
The scheme will be applicable for vehicles registered as of the 1st December 2015, details will be announced in the coming weeks.
Servicing of electric Vehicles and Charging Points
a) Companies wishing to invest in electric vehicle charging points will be given a grant of not more than €1,500 of the cost to setup a charging point.
b) A grant amounting to a maximum of €25,000 will be given to New Car Importers who would like to upgrade their garage to service electric vehicles and train their staff for this new technology. The grant will be offered on first come first served basis.
Driving a Motorcycle with a Category B driving licence
As of the 1st January 2016, all drivers who are in a possession of a Category B driving licence may start driving a Scooter or a Motorcycle with an engine capacity of up to 125cc with their Category B driving licence. Transport Malta shall be issuing further policy guidelines in the coming days.
Vehicles exempt from payment of the Valletta CVA
Hybrid Vehicles will be added to the list of vehicles that will be exempt from the payment of CVA in Valletta.
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