Electric cars, solar water heaters now VAT free

Electric cars and solar water heaters can now be bought VAT free under schemes aimed at encouraging the use of these environment-friendly products.

A similar incentive applies to musical instruments, in another scheme aimed at promoting local talent.

Buyers will benefit from a 15.25 per cent refund on the value of the product.

The schemes were published in the Government Gazette on March 1 and explained yesterday by Parliamentary Secretary Tonio Fenech.

Mr Fenech said a person who buys an electric powered car or a solar heater can apply for this one-off grant within three months of purchase. The maximum refund for an electric car is Lm500, while for the solar heater it is Lm50.

A person who buys a musical instrument could benefit from a grant of up to Lm200. Mr Fenech said the government wanted to help in the spread of culture.

Mr Fenech said that although the schemes were announced in the March 1 gazette they applied to items bought since the beginning of the year.

The application for the schemes can be downloaded from the Finance Ministry's website and sent to the VAT Department by post and the consumer would then receive a cheque by post. Alternatively the customer could go to the VAT Department in Birkirkara and complete a form there.