Importing a second-hand car from the EU could soon become cheaper, as Brussels has told Malta to change its registration rules.  

On Wednesday the European Commission sent Malta what is known as a reasoned opinion over what it says are discriminatory rules on registering cars and other motor vehicles imported from the EU.  

Malta has been given two months to rectify the situation or could face legal action in the European Courts of Justice.  

According to Maltese tax rules, cars registered after 2009 and imported from other Member States are taxed more heavily than similar cars registered in Malta before that date. 

The rules were put in place by the government in 2008 in a bid to protect local car import companies from far cheaper second-hand imports from the EU.  

In its latest infringement update on Wednesday, Brussels said it considers the Maltese rules incompatible with the Treaty on the Functioning of the European Union, prohibiting discrimination against imported products since cars purchased from other Member States are taxed more heavily compared to domestic cars. 

The Maltese car taxation system does not take into account the date of first registration of the vehicle, where registration took place in another Member State, it said. 

“Consequently, the Maltese car taxation system has a discriminatory effect with respect to motor vehicles coming from other Member States. If Malta does not act within the next two months, the Commission may decide to refer the case to the Court of Justice,” the announcement reads.  

The bulk of second-hand vehicles imported into Malta normally come from the United Kingdom.