The European Commission may take another tilt at allegedly discriminatory car taxation policies, this time launching legal action at the European Court of Justice (ECJ) against Malta.
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Brussels considers the Maltese registration tax system unfairly penalises second hand vehicles, charging more tax than on vehicles registered initially in Malta.
Because many of these used cars are imported from other European Union (EU) member states, it deems this illegal, citing ECJ precedents: “The court has consistently held that…member state must not impose any internal taxation on products from other [EU countries exceeding] that imposed on similar domestic products.”
The Commission has sent Malta a final warning letter, giving it two months to say how it will reform its system or maybe face an ECJ case.
Brussels’ main concern centres on a minimum amount of tax, fixed only for used cars in Malta. Otherwise registration fees vary according to engine size, meaning cars initially registered in Malta can have registration tax lower than this second-hand car minimum.
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By GlobalDataThe Commission is also prepared to ask judges to demand Malta makes its car registration tax calculations more transparent, deeming them illegally opaque.
The case would follow previous rulings against Poland and Hungary’s car taxation systems, where judges found illegal discrimination against imported vehicles.
Keith Nuthall/International News Services
