Importers of second-hand vehicles on the road for under a year are facing an additional percentage of registration tax which the Malta Transport Authority (ADT) is failing to disclose in advance.
Mario Mizzi was surprised to discover he had to pay €10,400 in tax - €1,086 more than expected - to register his second-hand vehicle imported from the UK.
The ADT guidelines for importing second-hand vehicles state that if a car is less than a year old, an additional percentage of tax must be paid for every remaining month till its first year on the road. But it is not quantified.
The guidelines state: "The RV (registration value) of vehicles which have not been supplied for more than 12 months after the date of first registration will be subject to a percentage increase for every remaining month till the 12 month period lapse."
Mr Mizzi had contacted The Sunday Times a week after he started the registration process of his car with the authority. At the time, he had expected to pay €9,314 in tax according to the calculations provided by the ADT on the authority's website.
But when he went to ADT's offices, he was told the amount would be higher.
Mr Mizzi said: "It is amazing that these people can just decide on an amount - and I have to cough up the money. There is no formula that allows a person to know what to expect."
The ADT eventually told him he had to pay €10,400. Mr Mizzi had not budgeted for the additional €1,086 and said he would need to ask the bank to increase his loan.
"I don't understand why I am being penalised for choosing a car that is new rather than somebody else's rubbish. The government says we need new cars on the road but then taxes individuals who choose cleaner cars," Mr Mizzi said.
When contacted, the ADT said a Finance Ministry representative met two of its officials "every so often" to decide on such cases.
The authority declined to say, however, what criteria were used to ensure fairness when deciding tax amounts for different individuals, saying it was the responsibility of the Finance Ministry.
The ministry said the registration value of a used car on the ADT's website was equivalent to its value after a year on the road. Since cars tend to depreciate during the first year, it was decided to adjust the registration value according to a standard formula.
The ministry said it was in the process of making these workings available to potential buyers directly through the website, and committed to introducing this feature in the coming months.