NEWS | Wednesday, 15 April 2009

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The presenter of Net TV’s motor show Wheelspin, Fleur Balzan, is setting the example for fellow motorists by claiming that the refund from the changeover to the new, carbon-based registration tax is paid to her immediately rather than converted into a staggered, annual refund on her circulation tax.
Balzan purchased a car in 2008 and paid the old registration tax, which was based on engine capacity, but can now claim a refund since the new registration tax is cheaper on the model she purchased.
Balzan said her car, which has a low carbon emission rate, stands to claim a refund on the registration tax but this refund will only be offset against her annual circulation tax payments for the next 20 years.
Additionally, the annual refunds on the circulation tax will be passed on to the new owner of the car, if it is eventually sold – another anomaly in the new registration tax system.
In an individual writ presented on her behalf by Labour deputy leader Toni Abela, Balzan filed a judicial letter in the First Hall of the Civil Court, where she also reserved the right to claim any refund on the VAT portion of the registration tax she paid for her car.
Balzan filed her protest against the Malta Transport Authority (ADT), the Minister for the Infrastructure and Transport and the Minister for Finance.
She said the ADT had admitted that a refund was due but was reserving the right to give the refund as and when it wished. Balzan said that once the refund was due, she expected to receive it immediately.
The European Commission has said that motorists who bought a car from May 2004 onwards and want to seek reimbursement of their VAT paid on registration tax must seek redress in the law courts.
European Commissioner for Taxation Laszlo Kovacs has said the Commission is pursuing an infringement procedure against Malta over the inclusion of registration tax in the taxable amount of VAT.
In October 2007, Labour MEPs Joseph Muscat and Grech lodged a complaint with Commissioner Kovacs that the Maltese authorities were unjustifiably levying VAT on the vehicle registration tax element.
As Labour leader, Muscat is now pursuing a legal action signed by some 17,000 plaintiffs demanding their VAT refund on the car registration tax they paid.
The government, which stands to pay some €50 million in VAT refunds if the courts uphold each claim, is steadfastly declining any refund.

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