Motorists who opt to use their cars or motorcycles only on weekends and public holidays will enjoy a 35% cut in their road tax, Finance Minister Edward Scicluna announced in the budget speech.
The measure applies to all vehicles registered with Transport Malta.
He said the VAT refund scheme on the purchase of bicycles and e-bikes will be retained as will the scheme for the purchase of electric motorcycles and scooters up to a maximum of €400.
Higher grant for grant conversions
The grant for those who convert their car to run on gas is being raised to €400 as long as emissions are cut by at least a quarter. The scheme is being extended to all vehicles and will be increased to €800 for goods vehicles.
The road licence for motorcycles of between 125cc and 250cc will, on renewal, be reduced to €25 from €65.
The existing incentives for those who purchase electric vehicles will be retained. No registration tax will be charged, while road tax will not be charged for the first five years. Incentives to households having electric vehicles charging facilities at night will also be retained.
€1.5m will be allocated to the vehicle scrappage scheme where a grant will be granted to motorists who replace their vehicle, of at least 10 years old, by a newer one with less emissions. The highest level of grant will rise to €7,000.
New testing procedure will see lower registration costs for many motorists
The minister said Malta will be introducing the Worldwide Harmonized Light Vehicle Test Procedure (WLTP), for greater precision in the testing of vehicle emissions.
Although registration tax and the road licence are linked to emissions, the government is taking action to ensure that consumers do not pay more.
Indeed, from January, many consumers will see a reduction in registration tax and licences while others will see the same outlay as at present.