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The Motor Vehicles Registration Tax (Amendment) Act, 2008 (Bill No. 18)

C 575

A BILL

entitled

AN ACT to amend the Motor Vehicles Registration Tax Act

(Cap.368).

BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-

1. (1) The short title of this Act is the Motor Vehicles Registration Tax (Amendment) Act, 2008, and this Act shall be read and construed as one with the Motor Vehicles Registration Tax Act, hereinafter referred to as "the principal Act".

(2) This Act shall come into force on the 1st January, 2009.

2. The long title of the principal Act shall be substituted by the following:

"To provide for the registration and licensing of motor vehicles in Malta.".

Short title. Cap. 368.

Substitution of long title of the principal Act.

3. Article 1 of the principal Act shall be substituted by the following:

"1. The short title of this Act is the Motor Vehicles
Registration and Licensing Act.".

4. Article 2 of the principal Act shall be amended as follows: (a) immediately after the definition "Authority" there shall be

added the following new definition:

Amendment of article 1 of the principal Act.

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" "brought into Malta" means the entry into Malta of a motor vehicle coming from a Member State and which was put into free circulation in such Member State prior to entry into Malta;";
(b) immediately after the definition "business use" there shall be added the following new definitions:
" "certificate" means the certificate of registration issued in terms of article 14;
"certificate of conformity" means a certificate of conformity issued by a manufacturer of a motor vehicle under any provision of the law of a Member State transposing Directive 70/156/EEC on the approximation of the laws of the Member States relating to the type-approval of motor vehicles and their trailers as amended;";
(c) immediately after the definition "chauffeur driven vehicle" there shall be added the following new definition:
" "circulation licence fee" means the fee paid on the licensing of a motor vehicle and annually thereafter;";
(d) immediately after the definition "commercial motor vehicle" there shall be added the following new definition:
" "CO2 emissions" means the combined level of carbon dioxide (CO2) emissions for a motor vehicle contained in the relevant EC type-approval certificate or EC certificate of
conformity or any other appropriate documentation acceptable to the Authority which confirms compliance with the type approval for the type of vehicle concerned;
(e) the definition "Council Regulation (EC) No 11/98" shall be deleted and immediately after the definition of "Council Regulation (EEC) No 684/92" there shall be inserted the following new definitions:
" "Directive 70/220/EEC" means Council Directive 70/
200/EEC of the 20th March, 1970 on the approximation of the laws of the Member States relating to measures to be taken
against air pollution by gases from positive-ignition engines of motor vehicles as amended;
"Directive 98/69/EC" means Directive 98/69/EC of the
European Parliament and of the Council of the 13th October
1998 relating to measures to be taken against air pollution by
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emissions from motor vehicles as amended;";
(f) in the definition "Council Regulation (EEC) No 684/92" immediately after the words "coach and bus" there shall be added the words ", as amended";
(g) immediately after the new definition "Directive 98/69/EC" there shall be added the following new definition:
" "electric vehicle" means a vehicle that derives its motive power exclusively from an electric motor, and it includes an electric motorcycle;";
(h) in the definition of "European Union" immediately after the word "Act" there shall be inserted the words ", and includes Norway, Iceland and Liechtenstein";
(i) immediately after the definition "European Union" there shall be added the following new definitions:
" "hybrid vehicle" means a vehicle having at least two different energy converters and two different energy storage systems for the purpose of vehicle propulsion;
"imported into Malta" means the entry into Malta of a motor vehicle from a third country;";
(j) immediately after the definition "leasing" there shall be added the following new definition:
" "length of a motor vehicle" means the length of the motor vehicle contained in the certificate of conformity or any other appropriate document approved by the Authority;";
(k) the definition "limousine" shall be substituted by the following:
" "limousine" means a luxury passenger vehicle which either has a chassis or wheel-base that has been stretched, or is a sedan which is promoted as a luxury vehicle by its manufacturer;";
(l) immediately after the definition "limousine" as substituted there shall be added the following new definition:
" "Member State" means a Member State of the European
Union;";
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(m) immediately after the definition "Minister" there shall be added the following new definitions:
" "M1 motor vehicle" means a vehicle used for the carriage of passengers and comprising no more than eight seats in addition to the driver’s seat;
"M2 motor vehicle" means a vehicle used for the carriage of passengers, comprising more than eight seats in addition to the driver’s seat, and having a maximum mass not exceeding 5 tonnes;
"M3 motor vehicle" means a vehicle used for the carriage of passengers, comprising more than eight seats in addition to the driver’s seat, and having a maximum mass exceeding 5 tonnes;";
(n) immediately after the definition "motor cars and other motor vehicles principally designed for the transport of persons" there shall be added the following new definition:
" "motor cycle" means a two-wheel vehicle with or without a sidecar, fitted with an engine having a cylinder capacity of more than 50 cm3 of the internal combustion type and, or having
a maximum design speed of more than 45 km per hour, and including a motor tricycle;";
(o) in the definition "motor vehicle" for the words "the First Schedule" there shall be substituted the words "the First and Second Schedules";
(p) immediately after the definition "motor vehicle for the transport of goods" there shall be added the following new definitions:
" "motor vehicle provisionally registered by the Authority" means a motor vehicle which is brought into Malta or which is manufactured in Malta and is registered by the Authority with the intention of being re-exported or exported, as the case may be, within a period of ninety days from -
(a) the date of its original entry into Malta; or
(b) from the release of the said vehicle from a bonded warehouse, in accordance with the provisions of article
20; or
(c) in the case of a vehicle manufactured in Malta,
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from the date of being provisionally registered by the
Authority;
"N1 motor vehicle" means a vehicle used for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes;
"N2 motor vehicle" means a vehicle used for the carriage of goods and having a maximum mass exceeding 3.5 tonnes but not exceeding 12 tonnes;
"N3 motor vehicle" means a vehicle used for the carriage of goods and having a maximum mass exceeding 12 tonnes;
"new motor vehicle" means, for the purposes of this Act, a motor vehicle which has never been registered in any country;
"owner" means the person by whom the motor vehicle is kept, and where the vehicle is the subject of a hire-purchase agreement or a lease, the person in possession of the vehicle under the agreement or lease;
"particulate matter" means the particulate emissions produced by diesel-powered motor vehicles;";
(q) the definition "person established outside Malta" shall be substituted by the following:
" "person residing in Malta" means:
(a) a person to whom an identity card has been issued in terms of the Identity Card Act or who is legally obliged to have an identity card issued under the Identity Card Act;
(b) a person, other than an individual, having his only or principal place of business in Malta;";
(r) in the definition "racing car" for the words "racing car" there shall be substituted the words "racing vehicle" and immediately after the new definition of "racing vehicle" there shall be inserted the following new definition:
" "registration tax" means the registration tax charged and levied in terms of article 3 of this Act;";
(s) the definition "registration value" shall be substituted by the following:

Cap. 258.

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" "RV" means the registration value of the motor vehicle in terms of article 9 of this Act;";
(t) immediately after the definition of "self-drive motor vehicle for short term hire" there shall be added the following new definition:
" "special purpose vehicle" means a vehicle which is designed, constructed or adapted solely or mainly for a purpose other than the carriage of persons or goods;";
(u) the definition "tax" shall be deleted;
(v) immediately after the definition "temporary registered vehicle" there shall be added the following new definitions:
" "third country" means a country other than a Member
State;
"Transport Appeals Board" means the Transport Appeals
Board set up under the Malta Transport Authority Act;
"used motor vehicle" means a motor vehicle which is not a new motor vehicle."; and

Addition of new article 2A to the principal Act.

(w) the definition "valuation" shall be deleted.

5. Immediately after article 2 of the principal Act there shall be added the following new article:

"Motor vehicles to be registered.

2A. (1)No person shall have in his possession or charge any motor vehicle which has not been registered with the Authority and on which the applicable registration tax has been paid unless -

(a) that person is an authorized manufacturer, agent or dealer of motor vehicles and the vehicle in his possession or charge is not being used on the road, or
(b) the vehicle is the subject of an exemption under this Act.
(2) No motor vehicle shall be used on the road without a circulation licence issued by the Authority unless that vehicle is the subject of an exemption under this Act.".
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6. Article 3 of the principal Act shall be substituted by the following:

Substitution of article 3 of the principal Act.

"Charge to tax. 3. There shall be charged and levied by the Authority on account of the Government a registration tax and a circulation licence fee at the rate or in the amount specified in this Act on the registration and licensing of -

(a) every motor vehicle imported or brought into Malta, and
(b) every motor vehicle manufactured in Malta
unless the vehicle is the subject to an exemption under this Act.".

7. Immediately after article 3 of the principal Act there shall be added the following new article 3A:

Addition of new article 3A to the principal Act.

"Certificate of conformity.

3A. Every motor vehicle imported or brought into Malta or manufactured in Malta shall, unless otherwise directed by the Authority, be accompanied by a certificate of conformity issued by the manufacturer, or any other similar and equivalent documentation in respect to the motor vehicle as proof that it complies with all relevant type approval requirements which the Authority may from time to time request, or as may be prescribed.".

8. In article 4 of the principal Act, immediately after the words "as may be prescribed" there shall be added the words "by regulations".

Amendment of article 4 of the principal Act.

9. Article 6 of the principal Act shall be substituted by the

Substitution of article 6 of the principal Act.

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following:

"Classification of motor vehicles.

6. (1) Every motor vehicle imported or brought into Malta and which is not registered in Malta and every motor vehicle manufactured in Malta shall be classified by the Authority under one of the categories listed in the First or Second Schedules to this Act, as the case may be, unless the vehicle is the subject of an exemption from registration under this Act.

(2) An M1 motor vehicle imported into
Malta which:
(a) is not a new motor vehicle;
(b) is not accompanied by a certificate of conformity issued in accordance with the most recent EC Directive and corresponding emission stage or standard issued by the European Community; and
(c) was manufactured more than four years prior to the date of coming into force of the most recent EC Directive as laid down therein and which stipulates the latest emission stage or standard,
shall be classified under Schedule 2 of the Act and a tax shall be levied thereon at the rate or in the amount specified therein:
Provided that the most recent EC Directive shall be the EC Directive applicable at the point of import of the motor vehicle:
Provided further that all M1 motor vehicles manufactured prior to the date of coming into force of the recent amendments to Directive 98/69/EC and Directive 70/220/EEC, shall be classified under Schedule 2 of the Act, and a tax shall be levied thereon at the rate or in the amount specified therein.".

Addition of new article 6A to the principal Act.

10. Immediately after article 6 of the principal Act there shall be added the following new article 6A:

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"Anti-abuse provision.

6A. Without prejudice to the provisions of article

19(2)(d)(i), every motor vehicle imported into another Member State from a third country with the
intention of making use thereof not in such Member
State but in Malta shall not be considered as having been brought into Malta from the relevant Member
State but shall be deemed to have been imported into
Malta.".

11. Article 7 of the principal Act shall be amended as follows: (a) subarticle (1) shall be substituted by the following:

"(1) Where a motor vehicle is imported or brought into Malta without an engine, it shall be provisionally classified under such category which would have been applicable had the motor vehicle been imported or brought into Malta with an engine of the maximum applicable CO2, and, where applicable,
also the particulate matter, attributed to such a motor vehicle of
the same category."; and
(b) in subarticle (3) for the words "The Authority may" there shall be substituted the words "Upon presentation of the relevant certification, the Authority may", and for the words "the tax" there shall be substituted the words "the registration tax".

12. Article 8 of the principal Act shall be substituted by the following:

Amendment of article 7 of the principal Act.

Substitution of article 8 of the principal Act.

"Rate of registration tax and circulation licence fee.

8. (1) Registration tax shall be due on the registration value of a motor vehicle classified or provisionally classified under the First, Second or Third Schedule to this Act, at the rate or in the amount specified against the respective category and in accordance with the criteria identified under each Schedule:

Provided that in respect of used M1 vehicles classified under the Second Schedule other than classified under subarticle (2) of article
6 of this Act shall not exceed the residual
depreciated tax value of an identical or similar motor vehicle on the Maltese market.
C 584
(2) A circulation licence fee shall be due on the licensing of a motor vehicle registered under this Act at the rate specified in the Fourth Schedule to this Act and every year thereafter.".

Substitution of article 9 of the principal Act.

13. Article 9 of the principal Act shall be substituted by the following:

"Registration value.

9. (1) The registration value of a new motor vehicle imported or brought into Malta or manufactured in Malta shall be the price quoted on the invoice, and also, where applicable, the insurance and freight.

(2) The registration value of a used motor vehicle imported or brought into Malta shall be deemed to be the market value of an identical or similar motor vehicle on the Maltese market which value shall be arrived at by depreciating the invoice value and also, where applicable the insurance and freight of such motor vehicle imported or brought into Malta as new or manufactured in Malta to the current Maltese market value:
Provided that the current Maltese market value shall be determined at the point the motor vehicle is brought to charge to tax.".

Substitution of article 10 of the principal Act.

14. Article 10 of the principal Act shall be substituted by the following:

"Conversion of classification.

10. (1) Without prejudice to anything contained in any other law the owner of a motor vehicle which has been classified or provisionally classified under this Act shall not carry out or allow any other person to carry out any addition, alteration or adaptation in respect thereto without the authorisation in writing by the Authority.

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(2) The owner shall thus give notice to the Authority before he may carry out or allow any other person to carry out such addition, alteration or adaptation and before he may make or allow any other person to make any use thereof, if the description of that motor vehicle would, as a consequence of such works or use, fall within a category other than that under which it has been classified.
(3) When a notice has been given as aforesaid or when any works or use as aforesaid have been carried out or has been made on the authorisation of the Authority, the Authority may convert the classification of the motor vehicle accordingly.
(4) When -
(a) a conversion of the classification of a motor vehicle is occasioned by any works carried out in respect thereto or by any use made thereof, and
(b) the rate of registration tax or the amount of registration tax chargeable with respect to motor vehicles classified under the category to which the classification has been converted is higher than the rate of registration tax or the amount of registration tax charged with respect to the original classification of that motor vehicle, an additional registration tax shall be due at the difference between the said two rates on the registration value of that motor vehicle as determined at the time of the original classification or in an amount equivalent to the difference between the said two amounts, as the case may be:
Provided that the provisions of this subarticle shall not apply if the conversion of the classification occurs later than sixty months from the date on which the original classification had been made in the case -
C 586

Amendment of article 11 of the principal Act.

(i) where the motor vehicle was first registered under this Act before the 31st December, 2001; or
(ii) of the conversion in the classification of a self-drive motor vehicle for short term hire, or a self- drive motor vehicle for long term hire or a chauffeur driven motor vehicle:
Provided further that the provisions of this subarticle shall not apply if the conversion of the classification occurs later than thirty-six months following the date of the original classification in the case of vehicles registered for use as self-drive vehicles for short-time hire.
(5) Where an N1 motor vehicle is converted into an M1 motor vehicle, the Authority shall classify that vehicle under the Second Schedule and for registration tax purposes shall apply the rate applicable to an M1 motor vehicle in the highest band under the Second Schedule whether the vehicle is powered by a petrol engine or by a diesel engine. The registration value (RV) of a motor vehicle as converted shall be deemed to be that of a used M1 motor vehicle.
(6) Where an N1 motor vehicle is converted into an M1 motor vehicle, the circulation licence fee payable on that vehicle as converted shall be that applicable to an M1 vehicle as provided for in the Fourth Schedule.
(7) For the purposes of subarticle (3), the term "original classification" does not include a provisional classification made in terms of article
7.".

15. Article 11 of the principal Act shall be amended as follows:

(a) in subarticle (1), for the words "article 12" there shall be substituted the words "articles 11A, 12 and 23"; and
(b) for the word "tax", wherever it appears, there shall be substituted the words "registration tax".
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16. Immediately after article 11 of the principal Act there shall be added the following new article:

Addition of

new article 11A

to the principal

Act.

"Appeals. 11A. (1) Any person who has paid or who is liable to pay vehicle registration tax may appeal against the amount of tax charged.

(2) An appeal under this article shall be made to the Transport Appeals Board, in
accordance with the procedure laid down under the

Cap. 332.

Malta Transport Authority Act:
Provided that for the purpose of this Act, the fee charged on the filing of an appeal with the Transport Appeals Board shall be of fifty euro (€50).
(3) The person filing the appeal before the
Transport Appeals Board may represent himself.
(4) The Appeals Board shall consider each case brought before it on its own merits.
(5) Where the Board determines that the amount due in respect of registration tax is less than the amount paid, the Authority shall repay on account of the Government the amount overpaid to the appellant concerned.
(6) Where the Board determines that the amount due in respect of the registration tax is greater than the amount paid, the appellant concerned shall pay the Authority the amount underpaid within the prescribed time limit.".

17. Article 12 of the principal Act shall be amended as follows:

(a) for the word "tax", wherever it appears, there shall be substituted the words "registration tax"; and
(b) in subarticle (2) for the words "which he" there shall be substituted the words "which the Authority".

Amendment of article 12 of the principal Act.

C 588

Substitution of article 14 of the principal Act.

18. Article 14 of the principal Act shall be substituted by the following:

"Registration of motor vehicles.

14. Upon the payment of the registration tax in respect of a motor vehicle, the Authority shall register that motor vehicle and shall issue a certificate of registration as prescribed by regulations.".

Deletion of article 17 of the principal Act.

Substitution of article 17A of the principal Act.

19. Article 17 of the principal Act shall be deleted.

20. Article 17A of the principal Act shall be substituted by the following:

"Provisionally registered vehicles.

17A. (1) Where a motor vehicle is provisionally registered by the Authority, the registration tax due shall be that specified in the Third Schedule to this Act.

(2) No motor vehicle shall be registered as a provisionally registered vehicle unless the manufacturer or the dealer or the agent or the owner, as the case may be, signs a declaration in such manner as the Authority may prescribe from time to time, to the effect that the motor vehicle will be provisionally registered only to be exported or re-exported.
(3) If after the expiry of the period of ninety days from the provisional registration of the vehicle the manufacturer or the dealer or the agent or the owner fails to present all the documents as may be required by the Authority from time to time, proving that the same vehicle which was registered as a provisionally registered vehicle was in fact exported or re-exported before the expiry of the said period of ninety days, an additional registration tax equivalent to the amount of registration tax due on the date on which the period during which the motor vehicle had to be exported or re-exported lapses, according to the respective category of that motor vehicle as specified in the First and Second Schedules, shall be due:
C 589
Provided that the Authority may extend by a further period of thirty days the period of ninety days mentioned in this subarticle on a written request of the manufacturer, dealer, agent or the owner of the motor vehicle, which written request must be made not later than the last day of the same period of ninety days.
(4) If, following the exportation or re- exportation of that provisionally registered vehicle according to subarticle (3), that provisionally registered vehicle is again brought into Malta notwithstanding that no addition, alteration or adaptation has been carried out thereto which according to article 12, would result in a change of the classification of that vehicle were it not a provisionally registered vehicle, an additional registration tax shall be due equivalent to the amount of registration tax due on the date of re- entry of that motor vehicle according to the respective category of that motor vehicle as specified in the First and Second Schedules shall be due.
(5) No provisionally registered vehicle may be driven on the road without a licence issued by the Authority upon the payment of the applicable circulation licence fee:
Provided the amount of circulation licence fee payable in respect of that vehicle shall be at the rate of 12 per cent of the annual circulation licence fee applicable to that vehicle for every month for which the vehicle is licensed. The period for which that vehicle shall be licensed shall not be less than one month.".

21. Article 18 of the principal Act shall be substituted by the following:

Substitution of article 18 of the principal Act.

"18. (1) Notwithstanding anything contained elsewhere in this Act, this Act shall not apply to the following motor vehicles -
(a) any registered private motor vehicle, including a caravan or motor home, which satisfies all the following conditions:
C 590

Cap. 258.

(i) is brought temporarily into Malta for a period, consecutive or otherwise, not exceeding seven months in any twelve month period for a longer period, as provided for by regulations not exceeding twelve months in a calendar year;
(ii) by a person who has his normal residence outside Malta;
(iii) that person does not have an identity card issued in terms of the Identity Card Act or is, under the said Act, obliged to be in possession of an identity card;
(iv) the vehicle is used for personal or business purposes;
Provided that where a private motor vehicle registered in the country of normal residence of the user is used regularly for the journey from his residence in that country to his place of work in an undertaking in Malta, the exemption shall be without limit;
(b) any registered private motor vehicle which is imported or brought temporarily into Malta by a student who has his normal residence outside Malta for his own use and who is residing in Malta for the purpose of pursuing his studies in an educational institution authorized as such by the education authorities;
(c) any motor vehicle brought into Malta by a licensed motor vehicle trader as a representative sample of a particular vehicle to be displayed or used for demonstration with a view of obtaining orders for similar vehicles provided the vehicle was brought temporarily into Malta with the authorization of the Authority;
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(d) goods vehicles registered in another Member State and operated by a haulier established and licensed in that Member State, brought into Malta to carry out international carriage of goods by road covered by a valid Community authorization in accordance with Council Regulation (EEC) No 881/92 as amended; and
(e) passenger motor vehicles registered in another Member State and operated by a carrier established and licensed in that Member State, brought into Malta to carry out international carriage of passengers by road covered by a valid Community licence in accordance with Council Regulation (EEC) No 684/92 as amended.
(2) The exemptions under paragraphs (b) and (c) of the preceding subarticle shall be granted under those conditions prescribed by regulations.
(3) Notwithstanding any other provision of this Act, any registered private motor vehicle made available to a person, whether or not resident in Malta, by a company or other legal entity established in a Member State other than Malta, in his capacity as employee, director, manager, shareholder or partner of the company or other legal entity, or where any registered motor vehicle made available to a person in his capacity as a self- employed person pursuing an economic activity in a Member State other than Malta, and such registered private motor vehicle is imported or brought temporarily into Malta but is not intended to be used in Malta on a permanent basis and is not in fact used in that manner, shall be exempt from registration tax.
(4) Subject to the exemption granted under this Act, where a vehicle leased from a person established in another Member State is brought into Malta for use in Malta, such vehicle shall be charged to a registration tax at the rate or in the amount specified in the Second Schedule payable within 30 days from being brought into Malta.
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(5) (a) Subject to the provisions of paragraph (b) hereunder, for the purposes of this article, "normal residence" means the place where a person lives for at least 185 days in each year, because of personal and occupational ties, or, in the case of a person with no occupational ties, because of personal ties.
(b) Where the occupational ties of a person are in a place different from that of his personal ties and consequently lives in turn in different places situated in two or more countries, the normal residence of that person shall be regarded as being the place of his personal ties provided that, unless the person is living in another country in order to carry out a task of a definite duration, such person returns there regularly.
(c) A person who lives in a country primarily for the purpose of attending a school or university or other educational or vocational establishment shall not be regarded as having his normal residence in that country.
(d) Proof of normal residence shall be given by the person bringing temporarily a motor vehicle into Malta by means of an identity card, or utility bills, or documents relating to the acquisition of property or to employment or to other transactions carried out in the course of day to day living, and any other valid documents which the Authority may require or accept.".

Substitution of article 19 of the principal Act.

22. Article 19 of the principal Act shall be substituted by the following:

"Exemption from tax.

19. (1) Without prejudice to the provisions of article 17A, no registration tax shall be payable under this Act on a motor vehicle which is imported or brought into Malta for the purpose of being exported as merchandise without being used in Malta and which is released from customs for this purpose, provided such export is made directly from a bonded warehouse unless such vehicle is again re-imported into Malta.

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(2) (a) The Minister responsible for finance may, by order and subject to any conditions, restrictions or limitations prescribed by regulations, exempt any person from the payment of any tax or part of the tax or from any obligation imposed under this Act.
(b) Such exemption may be granted with retrospective effect.
(c) The Minister responsible for finance may revoke any order made under this article.
(d) Exemptions from the payment of registration tax and, where applicable, from the payment of circulation licence fees shall be applicable where the motor vehicle –
(i) is the personal property of a private individual and is being brought permanently into Malta by the individual when he is transferring his residence from a place outside Malta to a place in Malta;
(ii) is supplied to the Government of Malta for the public service;
(iii) is supplied to the Armed Forces of Malta;
(iv) is for official use by an institution of the European Union;
(v) is for the personal use of officials or other members of the staff of an institution of the European Union who transfer their residence to Malta to take up a position here with an institution of the European Union;
(vi) is supplied to any international organization recognized as such by the Minister responsible for foreign affairs for official use in Malta; and
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Cap. 191

(vii) is supplied under diplomatic, consular or similar arrangements in virtue of the Diplomatic Immunities and Privileges Act.
(3) Where a motor vehicle, which has been granted an exemption from registration tax under subarticle (2)(d)(i), (ii), (iii) (iv), (v), (vi) and (vii) is sold or disposed of, there shall be paid on it the registration tax applicable to the market value of the vehicle.
(4) The exemptions under this regulation shall be granted under those conditions as may be specified by regulations.
(5) Without prejudice to the provisions of subarticle (2), the Minister responsible for finance may authorise the Authority to register a motor vehicle, subject to such conditions, limitations or restrictions as it may impose, either without payment of registration tax or on payment of the registration tax at less than the rate ordinarily chargeable or, where the said tax has been paid, to repay the tax in whole or in part.".

Addition of new article

19A to the principal Act.

23. Immediately after article 19 of the principal Act there shall be added the following new article:

"Granting of credit.

19A. (1) Without prejudice to the provisions of this Act, the Minister responsible for finance may by Order, and according to the terms specified therein, grant credit on registration tax which has been paid or may have to be paid on a motor vehicle within a specified time as may be determined in the Order.

(2) The Minister responsible for finance may revoke any order made under this article.".

Amendment of article 20 of the principal Act.

24. Article 20 of the principal Act shall be amended as follows:

(a) for the marginal note thereto, there shall be substituted the words "Power to make rules and regulations.";
(b) subarticle (1) shall be substituted by the following:
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"(1) The Minister may, with the concurrence of the Minister responsible for finance, by rules published in the Gazette:
(a) amend or substitute the First, Second or Third Schedule to this Act provided that no such amendment or substitution shall have the effect of increasing the tax charged in accordance with the said Schedules;
(b) amend or substitute the Fourth Schedule even if such amendment will have the effect of increasing the fees charged in accordance with the said Schedule; and
(c) classify, substitute or modify the category of motor vehicles which may be registered in Malta."; and
(c) in subarticle (2) for the words "The Minister may make rules" there shall be substituted the words "The Minister may make such regulations as he considers necessary" and immediately after the words "for securing the payment" there shall be inserted the words "and collection".

25. Article 21 of the principal Act shall be amended as follows:

(a) for the word "tax", wherever it appears, there shall be substituted the words "registration tax";
(b) paragraph (e) of subarticle (1) shall be substituted by the following:
"(e) causes or permits the leasing of a motor vehicle, under his care, which has been registered by the Authority for self-drive purposes, and on which a registration tax in the amount of 30 per cent or 20 per cent of its registration value, as the case may be, has been paid; or";
(c) in subarticle (1), for the words "exceeding one thousand and one hundred and sixty-four euro and sixty-nine cents (1,164.69)" there shall be substituted the words "exceeding two thousand five hundred euro (€2,500)"; and

Amendment of article 21 of the principal Act.

C 596
(d) immediately after subarticle (3) there shall be added the following new subarticle (4):

Cap. 65.

"(4) Where the owner of a motor vehicle, registered and licensed by the Authority, fails to pay the applicable circulation licence fee on that vehicle within two months from the expiry of the vehicle licence, he shall be liable to an administrative fine, payable to the Authority, of €2 for each day the applicable circulation licence fee remains unpaid, notwithstanding any other action which may be taken in terms of the Traffic Regulation Ordinance or any regulations thereunder.".

Addition of new article

22A to the principal Act.

26. Immediately after article 22 of the principal Act there shall be added the following new article:

"Powers of the Police and Enforcement Officers.

Cap. 65.

22A. (1) Whenever a Police officer or an Enforcement Officer of the Authority reasonably suspects that -

(a) a motor vehicle has not been registered in accordance with this Act, or
(b) a motor vehicle has been converted and a notice in relation to the conversion has not been given under article
10, or
(c) any registration tax in respect of a vehicle has not been paid,
the officer may detain the vehicle and shall order the removal of the said vehicle in accordance with the provisions of the Traffic Regulations Ordinance or regulations made thereunder.".

Amendment of article 23 of the principal Act.

27. Article 23 of the principal Act shall be amended as follows:

(a) in subarticle (1) for the words "Tax paid" there shall be substituted the words "Registration tax paid";
C 597
(b) in paragraph (a) of subarticle (1) for the words "imported into Malta" there shall be substituted the words "imported or brought into Malta";
(c) immediately after paragraph (c) of article 23 thereof there shall be added the following new paragraphs:
"(d) may be refundable under article 19(4), or
(e) it is subsequently modified by the Transport Appeals
Board.".

28. Article 24 of the principal Act shall be substituted by the following new article:

Substitution of article 24 of the principal Act.

"Motor vehicles registered in

2008.

24. (1) Any person who has had an M1 motor vehicle registered in his name between the

1st January 2008 and the 31st December, 2008, may opt to have the registration of the said vehicle regulated by the provisions of this Act.
(2) A person who opts to have the registration of his vehicle regulated in terms of subarticle (1), shall present a request in writing to the Authority to have the vehicle taxed in accordance with the rates as provided for under this the Act.
(3) A person who opts to have the registration of his vehicle regulated in terms of subarticle (1), shall forward a claim to the Authority for a credit on proof being shown that excess registration tax has been paid on the registration of the said vehicle when compared to what would have been paid on the same motor vehicle had it been brought in or manufactured in Malta on or after the 1st January, 2009.
(4) Authorised motor importers or motor dealers who prior to the 31st December, 2008 have registered any M1 motor vehicles and motor cycles with the Authority without the applicable registration tax having been paid thereupon, shall effect the appropriate registration tax payment by the 30th June, 2009.
C 598
(5) Authorised motor importers or motor dealers who had ordered any M1 motor vehicles and motor cycles prior to the 3rd November 2008, may opt to have the registration of the said vehicles regulated by the applicable registration tax rates in force prior to the 1st January, 2009 and shall effect payment of that registration tax by the 30th June, 2009:
Provided that where the said payment is not effected by the stipulated date the vehicle will automatically be de-registered and its re-registration shall be regulated under the terms of this Act.".

Substitution of the First Schedule to the principal Act.

29. The First Schedule to the principal Act shall be substituted by the following new Schedule:

C 599
"FIRST SCHEDULE [Article 6(1)]

Category A - Motor vehicles used for the carriage of passengers and comprising more than eight seats in addition to the driver’s seat (M2 and M3)

VERA

Code No. Goods

1.021.000 1. Scheduled buses:

Rate of Tax Percentage of RV

1.021.001

1.021.002

1.1 new …………………………..………………. 0%

1.2 used ………………………………………….. 6%

1.022.000 2. Unscheduled buses, coaches, trackless trains open-top buses,

double deckers and amphibious motor vehicles

1.022.001

1.022.002

2.1 new …………………………….....……………

2.2 used …………………..………………...………

0%

24%

1.023.000 3. Minibuses for the transport of passengers against payment

1.023.001 3.1 new ………………………………………....... 0%

1.023.002 3.2 used …………………………………….…… 21%

1.024.000 4. Midibuses and private minibuses with engine:

1.024.001 4.1 of a cylinder capacity not exceeding 1500cc …. 50.5%

1.024.002 4.2 of a cylinder capacity exceeding 1500cc ……... 60%

1.025.000 5. Other (excluding electric vehicles):

1.025.001 5.1 Vans for the transport of eleven persons,

including the driver and tail-lift vans:

1.025.010 5.1.1 for use to transport passengers against

payment:

1.025.011 5.1.1.1 new ……………..…….……….. 0%

1.025.012 5.1.1.2 used ……………………………. 21%

1.025.020 5.1.2 other motor vehicles with engine:

1.025.021 5.1.2.1 of a cylinder capacity not

exceeding 1500cc ……………………… 50.5%

1.025.022 5.1.2.2 of a cylinder capacity exceeding

1500cc ………………………......……… 60%

1.025.050 5.2 Other ………………………………………….... 60%

1.026.100 6. Electric vehicles:

1.026.110 6.1 battery driven electric vehicles ……………... 0%

1.026.120 6.2 petrol (or diesel) electric hybrid vehicles:

1.026.121 6.2.1 scheduled buses:

1.026.122 6 6.2.1.1 new ……………….….…………. 0%

1.026.123 6.2.1.2 used ……………..………………. 2%

1.026.131 6.2.2. other ……………………..………...…... 16.5%

C 600

Category B – Other motor vehicles

1. Taxicars ……………………………………..

1.1. New ……………………………......…………

1.2. Used ……........………………………………

1.2.1 having a euro 5 or 4 engine …….............

1.2.2. having a euro 3 engine or less ............… Where a taxicar, which on its first registration was or is a new motor vehicle, is converted into a private car within 60 months from date of first registration as a taxicar, that vehicle shall be valuated by the Authority and there shall be paid on it the registration tax applicable to M1 motor vehicles under the Second Schedule less the 20 per cent already paid on its first registration.

2. Self-drive motor vehicles for short term hire and

chauffeur driven vehicles (new only)

2.1. Self-drive vehicles with petrol engine

2.1.1. engine capacity not exceeding

1500cc ……...........................................…

2.1.2. engine capacity exceeding 1500 cc

2.2. Self-drive vehicles with a diesel engine

2.2.1. engine capacity not exceeding

2000cc ……...........................................

2.2.2. engine capacity exceeding 2000 cc.

2.3. Chauffeur driven vehicles with a petrol engine

2.3.1. engine capacity not exceeding

2000cc ……...........................................

2.3.2. engine capacity exceeding 2000cc

2.4. Chauffeur driven vehicles with a diesel engine

2.4.1. engine capacity not exceeding

3000cc .........................................……...

2.4.2. engine capacity exceeding 3000cc

The above rates in respect of taxicars, self-drive motor vehicles for short term hire and chauffeur driven motor vehicles shall be applicable only until the 31st December,

2009. As from the 1st January, 2010, the applicable rates for all three categories shall be those which apply to M1 motor

vehicles under the Second Schedule.

20%

20%

75%

90%

20%

As per rates for M1 vehicles

in the Second

Schedule

20%

As per rates for M1 vehicles

in the Second

Schedule

20%

As per rates for M1 vehicles

in the Second

Schedule

20%

As per rates for M1 vehicles

in the Second

Schedule

3. New ambulances and prison vans, …………………………. 0%

C 601

C 602

1.112.043 13.3 exceeding 125cc but not exceeding 250cc ......... 21%

1.113.003 13.4 exceeding 250cc but not exceeding 500cc ......... 21%

1.114.003 13.5 exceeding 500cc but not exceeding 800cc ......... 21%

1.115.003 13.6 exceeding 800cc ........... ........... ........... ........... . 21%

14. Hearses (new only)

14.1 Up to the 31st March, 2009 …………………..

14.2 Thereafter ……………………………………

0%

30%

Category C - Motor vehicles used for the transport of goods (N1, N2 and N3)

2. Other (petrol, diesel or other):

1.043.030 2.1.2 Other:

1.043.040 2.1.2.1 New …………….……………… 57.5%

1.043.050 2.1.2.2 Other:

1.043.051 2.1.2.2.1 classic, vintage and veteran vehicles certified authentic by a body approved by the Authority:

1.043.052 2.1.2.2.1.1 vehicles with an

age of 50 years or over from date of manufacture ……..

10.5%

but not less than €629 per vehicle

C 603

1.043.053 2.1.2.2.1.2 vehicles with an age of 35 years or over but less than 50 years from date of manufacture ……….…...

28.5%

but not less than €1,712

per vehicle

1.043.054 2.1.2.2.2 other ………..……….. 57.5%

but not less than €3,447

per vehicle

1.044.000 2.2. Vehicles with a g.v.w. exceeding 3.5 tonnes but

not exceeding 5 tonnes:

1.044.010 2.2.1 Chassis fitted with engine and cab

1.044.020 2.2.1.1 New ……..……………………. 57.5%

1.044.030 2.2.1.2 Other ………………..…………. 57.5%

but not less than €3,447

per vehicle

1.044.040 2.2.2 Other:

1.044.050 2.2.2.1 New ……………………………. 57.5%

1.044.060 2.2.2.2 Other:

1.044.061 2.2.2.2.1 classic, vintage and veteran vehicles certified authentic by a body approved by the

Authority:

1.044.062 2.2.2.2.1.1 vehicles with an

age of 50 years or over from date of manufacture ……..

1.044.063 2.2.2.2.1.2 vehicles with an age of 35 years or over but less than 50 years from date

of manufacture ………….

10.5%

but not less than €629 per vehicle

28.5%

but not less than €1,712

per vehicle

1.044.064 2.2.2.2.2 other ………..……….. 57.5%

but not less than €3,447 per vehicle

1.045.000 2.3 Vehicles with a g.v.w. exceeding 5 tonnes but not

exceeding 12 tonnes:

1.045.001 2.3.1 Chassis fitted with engine and cab:

1.045.011 2.3.1.1 New………………..…………... 24%

1.045.020 3.3.1.2

Other…………………..………….

1.045.030 2.3.2 Other:

57.5% but not less than €3,447 per vehicle

C 604

1.045.052 2.3.2.2.1.1 vehicles with an age of 50 years or over from date of manufacture ……..

1.045.053 2.3.2.2.1.2 vehicles with an age of 35 years or over but less than 50 years from date of manufacture ………….

10.5%

but not less than €1,258 per vehicle

28.5%

but not less than €3,424 per vehicle

1.045.054 2.3.2.1.2 other ………….……….. 57.5%

but not less than €6,895

per vehicle

1.046.000 2.4 Vehicles with a g.v.w. exceeding 12 tonnes:

1.046.001 2.4.1 Chassis fitted with engine and cab:

1.046.011 2.4.1.1 New ……………………….…… 24%

1.046.020 2.4.1.2 Other …………………….…… 57.5%

but not less than €4,403 per vehicle

1.046.030 2.4.2 Other:

1.046.041 2.4.2.1 New …………………….……… 24%

1.046.050 2.4.2.2 Other:

1.046.051 2.4.2.2.1 classic, vintage and veteran vehicles certified authentic by a body approved by the Authority:

1.046.052 2.4.2.2.1.1 vehicles with an

age of 50 years or over from date of manufacture ……..

1.046.053 2.4.2.2.1.2 vehicles with an age of 35 years or over but less than 50 years from date of manufacture ………….

10.5%

but not less than €1,363 per vehicle

28.5%

but not less than €3,692

per vehicle

1.046.054 2.4.2.2.2 other ………………….. 57.5%

but not less than €3,895 per vehicle

3. Other (excluding electric vehicles):

1.047.010 3.1 Chassis fitted with engine and cab …………….... 57.5%

1.047.020 3.2 Vehicles of unitary (monocoque) structure fitted with engine and a body consisting only of the driver’s

cab and the bare rear platform ……………………… 57.5%

1.047.030 3.3 Other:

1.047.040 3.3.1 New……………………………………… 57.5%

C 605

Category D – Tractors

Category E - Special purpose motor vehicles (for example, aircraft towing tractor, asphalt finisher, baby kart, backhoe loader bulldozer, car transporter, cesspit emptier, cesspool emptier, cherry picker, con mixer with hiab, concrete mixer, concrete pump, core cutter, crane, crew cab, dental bus, digger drilling machine, dumper, elevating platform, excavator, fire engine, fork-lift truck, grader, hook loader, ice cream kiosk, ice resurfacer, ladder vehicle, line painter, loading shovel, luton van, mechanical shovel midibus, milling machine, mini shovel, mobile cinema, mobile generator, mobile kiosk, mobile laboratory, mobile workshop, mowing machine, recovery truck, recovery vehicle, road roller, road scarifier, road surfacer, road sweeper, scissor lift platform, skid steer loader, snow plough, station tractor, street cleaner, tail-lift, tar sprayer, truck w/hydraulic lift, tow truck, tow truck w/hiab, tower ladder, tower wagon, tractor excavator, trenching machine, truck with workshop, tug master, vacuvator truck, wheel loader, x-ray machine): ………………………….......…….0%

In all cases the vehicle must not be a goods carrying vehicle.
C 606

Other motor vehicles

1.091.000 Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or

airports for short distance transport of goods, tractors of the type 0%

used on railway station platforms, parts of the foregoing vehicles

1.101.000 Tanks and other armoured fighting vehicles, motorised, whether or

not fitted with weapons, and parts of such vehicles 0%".

Substitution of the Second Schedule to the

principal Act.

30. The Second Schedule to the principal Act shall be substituted by the following new Schedule:

"SECOND SCHEDULE (Article 6)

Registration tax to be paid on the registration of M1 motor vehicles

(including electric and hybrid electric motor vehicles)

The amount of registration tax to be paid on the registration of M1 motor vehicles, whether new or used, of motor cycles and of quad bikes shall be in accordance with the following tables:

M1 motor vehicles

Petrol-engined

C 607

Diesel-engined with particulate matter of 0g/km up to and including 0.005g/km

Diesel-engined with particulate matter exceeding 0.005g/km but not exceeding

0.025g/km

C 608

Diesel-engined with particulate matter exceeding 0.025g/km but not exceeding

0.035g/km

Diesel-engined with particulate matter exceeding 0.035g/km

C 609

Minimum tax applicable to used M1 motor vehicles (including electric and hybrid electric motor vehicles) imported from third countries in terms of article 6(2) of this Act

* The vehicle’s age is the age of a vehicle from year of manufacture.

C 610

Motor cycles

Quad bikes

Quad bikes to be used on the road cc x RV x 0.18%

Tax rate formula:

(1) Following the application of the relevant tables under the heading "M1
Motor Vehicles", the total amount of the registration tax shall be equal to the sum total of the CO2 value (g/km – grams per kilometer) multiplied by the registration value (RV) multiplied by the indicated % value, and the total of the length (mm)
multiplied by the registration value (RV) multiplied by the indicated % value:
(CO2 x RV x x% ) + (length (mm) x RV x x%).
(2) Where the CO2 value has not been provided to the Authority by the motor vehicle owner, the Authority shall apply the rate of 251g/km.
(3) Where the particulate matter value has not been provided to the Authority by the motor vehicle owner, the Authority shall apply the rate of 0.035 g/km.
(4) Where, on the application of paragraph 1 above, the amount of tax on the registration of a used M1 motor vehicle imported from a third country in terms of article 6(2) is less than the minimum applicable to that motor vehicle, the amount of tax due on the registration of that vehicle shall be the minimum applicable to that vehicle as established in the table bearing the heading "Minimum Tax applicable to used M1 motor vehicles imported from a third country in terms of article 6(2)".
(5) For hybrid vehicles the CO2 value shall be the combined level of amount of carbon dioxide (CO2) emissions from a combination of the electric motor and internal combustion engine contained in the relevant EC type-approval
certificate or EC certificate of conformity or any other appropriate documentation acceptable to the Authority which confirms compliance with the type approval for the type of vehicle concerned. Otherwise, it shall be the combined level of carbon
C 611
dioxide (CO2) contained in the relevant EC type-approval certificate or EC certificate of conformity or any other appropriate documentation acceptable to the Authority which confirms compliance with the type approval for the type of vehicle concerned.

Hybrid vehicles

The rate of registration tax payable on hybrid vehicles shall be based on the tables for M1 motor vehicles but the CO2 value as provided in the Certificate of Conformity shall be reduced by 20%.

Tax on converted exempted or partly-exempted

M1 motor vehicles and motor cycles and

self-drive and chauffeur driven motor vehicles

(1) Where an M1 motor vehicle or a motor cycle which, upon registration, had been exempted from the payment of registration tax under article 19 of this Act, is sold to a person who does not qualify for a full registration tax exemption there shall be paid thereon the tax applicable to the market value of the vehicle.
(2) Where an M1 motor vehicle or a motor cycle which, upon registration, had been partly exempted from the payment of registration tax under article 19 of this Act, is sold to a person who does not qualify for a registration tax exemption there shall be paid thereon the tax applicable to the market value of the vehicle less the registration tax paid upon the registration of that vehicle.
(3) Where an M1 motor vehicle which has been registered as a self-drive motor vehicle with a registration mark having two letters followed by the letter K is converted within thirty-six months from its registration into a private motor vehicle, there shall be paid thereon the tax applicable to the market value of the vehicle less the registration tax paid upon the registration of that vehicle.
(4) Where an M1 motor vehicle which has been registered as a chauffeur driven motor vehicle with a registration mark having one letter followed by the letters GY is converted within sixty months from its registration into a private motor vehicle, there shall be paid thereon the tax applicable to the market value of the vehicle less the registration tax paid upon the registration of that vehicle.".

Substitution of the Third Schedule to the principal Act.

31. The Third Schedule to the principal Act shall be substituted by the following new Schedule:

C 612
"THIRD SCHEDULE
(Article 17A)

Registration tax for provisionally registered vehicles

Substitution of the Fourth Schedule to the principal Act.

32. The Fourth Schedule to the principal Act shall be substituted by the following new Schedule:

"FOURTH SCHEDULE (Articles 8, 10)

Circulation licence fees leviable annually in respect of motor vehicle licences

These fees may only be amended with the concurrence of the Minister responsible for finance. The fees levied shall be on account of the Government.

For the purpose of this Schedule, "year" means a calendar year from the year of manufacture of a motor vehicle.

1. Annual Circulation Licence fees for M1 motor vehicles registered on the 1st January, 2009 and thereafter (excluding those in item 6), and self- drive vehicles for short term hire with an engine capacity exceeding 1500cc in respect of vehicles with a petrol engine and exceeding 2000cc in respect of vehicles with a diesel engine and chauffeur driven vehicles with an engine capacity exceeding 2000cc in respect of vehicles with a petrol engine and exceeding 3000cc in respect of vehicles with a diesel engine.

C 613

Petrol-engined

C 614

Diesel-engined with particulate matters of 0g/km up to and including 0.005g/km

C 615

Diesel-engined with particulate matters exceeding 0.005g/km but not exceeding

0.025g/km

C 616

Diesel-engined with particulate matters exceeding 0.025g/km but not exceeding

0.035g/km

C 617

Diesel-engined with particulate matters exceeding 0.035g/km

2. Annual Circulation Licence fees for M1 motor vehicle registered before the 1st January, 2009 (excluding those in item 6), taxis and self-drive vehicles for short term hire with an engine capacity not exceeding 1500cc in respect of vehicles with a petrol engine and not exceeding 2000cc in respect of vehicles with a diesel engine and chauffeur driven vehicles with an engine capacity not exceeding 2000cc in respect of vehicles with a petrol engine and not exceeding 3000cc in respect of vehicles with a diesel engine.

C 618

Petrol-engined

C 619

Diesel-engined

C 620

3. Annual Circulation Licence fees for motor cycles and quad bikes registered on the 1st January, 2009 and thereafter

4. Annual Circulation Licence fees for motor cycles and quad bikes registered before the 1st January, 2009

C 621

before a date falling thirty five years preceding the date of issue or
renewal of their licence and certified authentic by a body approved by the Malta Transport Authority
Petrol-engined:

(iii) more than 1449cc up to and including 1500cc ......... 58
(iv) more than 1500cc up to and including 1800cc ......... 60 (v) more than 1800cc up to and including 2000cc ......... 100 (vi) more than 2000 c.c. ................................................. 185
C 622
Diesel-engined:

7. For the use of goods vehicles manufactured on or before a date falling thirty five years preceding the date of issue or renewal of their licence and certified authentic by a body approved

by the Malta Transport Authority ………………….................……. 93

8. For the use of motor cycles manufactured on or before a date falling thirty five years preceding the date of issue or renewal of their licence and certified authentic by a body approved by the Malta Transport Authority

(i) up to and including 50cc ....................……….......... 25 (ii) more than 50cc up to and including 125cc ............... 26 (iii) more than 125cc up to and including 250cc …......... 28 (iv) more than 250cc up to and including 500cc ............. 29 (v) more than 500cc up to and including 800cc ............. 30 (vi) more than 800 c.c. ................................................... 31

9. For the use of special purpose vehicles

Vehicle gross weight

C 623

11. For the use of N1, N2 and N3 motor vehicles, excluding tractors/tractor trailer combinations and special purpose vehicles, per annum:

C 624
€
12. For the use of M2 and M3 vehicles for hire of reward, per annum -

13. For the use of other M2 and M3 vehicles, per annum –

intended and used solely for agricultural purposes, per annum ......... €11.65

16. For the use of a motor vehicle registered before the 1st January, 2009 to be used for long term hire (until the 31st December, 2013; thereafter they shall be charged the rates applicable to M1 vehicles under item 2 in respect to M1 vehicles; the rates applicable to motor cycles under item 3 in respect to motor cycles, and the rates applicable to goods carrying vehicles under item 11 in respect to goods carrying vehicles):

C 625
Motor cycles ................................................................. €46.55
Goods carrying vehicles with a g.v.w. of less than 15 tonnes............................................................................ €93.15

17. For the use of an electric motor vehicle, excluding

motor cycles ................................................................................. €75".

Deletion of the Fifth Schedule to the principal Act.

33. The Fifth Schedule to the principal Act is hereby deleted.

Objects and Reasons

The object of this Bill is to introduce a new motor vehicle registration tax and licensing fee system based on polluter pays concept.