Car importers question tax waiver, offer auction

The Association of Car Importers has questioned the government's intention to waive the registration tax on the 59 cars to be used in the Commonwealth Heads of Government Meeting in view of the fact that a pre-budget proposal to reduce Malta's high car registration tax had been turned down.

The association said its pre-budget proposal, which would have made cars more affordable for the middle class, included a reduction in the registration tax on cars which are least harmful to the environment.

The proposal was turned down because the government claimed it could not afford to reduce revenue from this tax, it said.

The ACIM claimed that forfeiting the registration tax on CHOGM cars - which will be auctioned after the conference at a starting price of Lm24,000 - would cost the government just under Lm1 million. Instead, had the ACIM proposals been upheld, the cost to the government would have been about Lm500,000.

ACIM warned that the current market situation "makes it impossible for their members to simply donate a car to the Community Chest Fund as in previous years."

Members, however, are willing to match the offer the government has made to the foreign car maker and auction off their own models, donating the profits after costs.

"This will be done only if the government agrees to accept proposals on reducing registration tax for at least the next year," ACIM said.

"We invite the government to think first of its citizens, the new-car importation businesses and their 1,000 workers."

"The government should give us the chance to offer for auction the number of cars necessary to raise the expected sum. Partial relief from registration tax will be given on these cars to make bidding for them attractive so that the same amount for charity may be raised.

"This partial relief will cost far less than the liri forfeited on the CHOGM cars and the positive balance can then be used to reduce registration tax in the small car segment. In that way everyone gets a chance and not just those with at least Lm24,000 in their pockets," the ACIM said.

Efforts to get a comment from the office of the Parliamentary Secretary at the Finance Ministry were unsuccessful.