Cars towed away in swoop on tax abuse

Several cars with foreign-registered number plates were yesterday impounded by Transport Malta as it clamped down on unpaid vehicle registration taxes.

People who witnessed a swoop on cars along the Sliema Strand told Times of Malta they saw at least six vehicles being towed under the watchful eye of the police and TM officials.

A Transport Malta official confirmed the authority’s action, adding the number of used vehicles with foreign-registered number plates on the roads had “mushroomed” in recent years.

Most of these cars are used high-end vehicles imported from the UK

Residents of Malta have to pay registration tax on cars imported for personal use but many flout the 20-day grace period allowed at law and continue to use their vehicles without paying the registration tax due.

Most of these cars are used, high-end vehicles imported from the UK at competitive prices.

“This has resulted in tax leakages worth hundreds of thousands of euro,” the official said, adding that the authority wanted to clamp down on this abuse.

The law states that individuals who bring a used vehicle into Malta must make an appointment for the car to be inspected. The whole process, including the inspection and registration of the car, must be completed within 20 days from the date the vehicle is brought into Malta.

The law also institutes a fine of €30 for each day that the vehicle remains not registered after the 20-day period lapses.

Registration tax is based on a valuation process conducted by Transport Malta that takes various aspects into consideration, including vehicle make and mileage.

ksansone@timesofmalta.com