Minister for Transport, Infrastructure and Capital Projects Ian Borg announced the transport budget measures which have been implemented from the 1st of January 2021, measures in line with what was announced in this year’s Budget.
Minister Ian Borg said, “As far as land transport is concerned, our preference remains in favour of a gradual move towards cleaner vehicles, including electric vehicles. But it is true that we cannot incentivize people to invest in electric vehicles if we do not continue to complement this with investment in the necessary infrastructure. Thus, in line with what we announced in last year’s budget, these measures will serve as another steppingstone towards this government’s clear vision; that in favour of more efficient and sustainable transport. I am committed and look forward to another year of continuous work for further sustainable development and growth, not only in the transport sector but also in other sectors, so that the fruits of our labour can be felt and furthermore be a benefit for all the Maltese and Gozitans from all spheres of society.”
The budgetary measures applicable from the 1st of January 2021 are the following;
1. Red character plate vehicle scheme for cars and motorcycles used only during the weekend and public/national holidays
All owners of licensed vehicles, including owners of licensed motorcycles, may apply for their vehicles to be licensed for use on weekends and public holidays only and benefit from a reduction of 65% on their annual circulation licence fee. Vehicles benefitting from this scheme shall have their registration plates changed with ones bearing red registration marks. All vehicles bearing such plates must remain garaged between Monday and Friday until 6.00 pm.
2. Vehicles with Red character plates may be used also on Fridays after 6.00 pm
All licensed vehicles, including motorcycles, that are registered with the Authority to be used solely on weekends and public/national holidays may now also be used on Fridays after 6.00pm.
3. Motorcycles
The annual circulation licence fee for motorcycles with a cubic capacity between 125cc and 250cc will be reduced from €65 to €25 per year.
4. Vintage vehicles
A vintage vehicle that has travelled a distance of more than three thousand kilometres (3,000 km) on the odometer in one year from its last licence renewal, or has over a period of two years travelled an average distance of more than three thousand kilometres (3,000 km) per year, shall upon its licence renewal be subject to the payment of the full road licence fee for that year or years in addition to the administrative fee of €8.
5. New vehicle registration tax and licence fee regime as from the 1st of January 2021 for vehicles with new CO₂ emission values
New cars certified by the manufacturer according to the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) and having CO₂ emission values of WLTP can benefit from lower registration tax and licence fee rates. As from the 1st of January 2021, Transport Malta has introduced a new vehicle registration tax and licence fee regime based on CO₂ WLTP values that will either have a neutral or positive impact – in terms of lower registration tax and licence fees – on consumers.
6. USED EURO 5 standard commercial vehicles manufactured between the years 2011 and 2015 and having a maximum mass not exceeding 3.5 tonnes
The current registration tax applicable to commercial vehicles having a maximum mass not exceeding 3.5 tonnes is dynamic and depends on the latest Euro standards. The latest Euro standard for such vehicles is no longer Euro 5 but Euro 6, and therefore the calculation of the registration tax for USED EURO 5 standard commercial vehicles having a maximum mass not exceeding 3.5 tonnes and that were manufactured between 2011 and 2015 shall be changed. New and used Euro 6 standard commercial vehicles shall continue to be charged the same registration tax.
7. Grant schemes
Transport Malta is currently in the process of reissuing financial grant schemes that were in place last year, while introducing new ones. These shall include financial grants for the conversion of vehicles to Autogas and the retrofitting of heavy duty vehicles with Heavy Duty Duel Fuel (HDDF) systems; scrappage scheme for conventional cars; financial grants for the purchase of electric vehicles, including motorcycles by private individuals, registered NGOs and private companies; and financial grants for the purchase of new wheelchair-accessible passenger transport vehicles.
8. Bus 70+
Up until the 31st of December 2020, this measure of people traveling for free using scheduled public transportation included; persons aged between 14 and 20, students aged 21 and over, persons with disabilities and persons aged 75 or over. Now, as from the 1st of January 2021, the measure is being extended to also include people between the ages of 70 and 74. This will lead to over 28,000 senior citizens, in addition to those already benefiting, to be eligible for this measure in order to benefit from free public transport. The measure works like previous measures; on a refund basis. This means that the amount spent on travel during one month is repaid as credit on the Tallinja card the following month. This will be a measure that will continue to help the elderly financially, in addition also to other increases in their pensions.
Photo (DOI/MTIP)
