Budget 2021

New emissions testing will see some pay lower registration tax, road license

19th October 2020

Grant to convert car to run on gas raised to €400, so long as emissions are reduced by at least a quarter

Malta will be introducing the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), for greater accuracy in the course of testing vehicle emissions, Finance Minister Edward Scicluna announced during Monday night’s Budget 2021 speech.

He said that with registration tax and road licence being linked to emissions, the Government is ensuring that consumers do not pay more.

The Minister announced that from January, some drivers will see a reduction in registration tax and licences, while others will continue to pay the current amount.

Government is expecting to see a reduction of €3 million to the state coffers due to this measure.

Drivers who choose to use their cars or motorcycles just on weekends and public holidays will benefit from a 35 per cent cut in their road tax, the Finance Minister said.

This applies to all vehicles registered with Transport Malta.

The Minister added that the VAT refund scheme on purchases of bicycles and e-bikes will be extended, in addition to the scheme for purchases of electric motorcycles and scooters, up to a maximum of €400.

 A grant for the conversion of a car to run on gas is to be raised to €400, so long as emissions are reduced by at least a quarter.

Motorcycles between 125cc and 250cc, on renewal, will see the road licence due reduced to €25 from €65.

A set of existing incentives for purchases of electric vehicles will be extended to next year, with no registration tax to be charged, and road tax to be exempt for the first five years. In addition, incentives to homes with electric charging facilities at night will also be extended.

The Minister announced that €1.5 million will be allocated to the vehicle scrappage scheme, with a grant to be made available to drivers who replace their vehicle – which must be  at least 10 years old – by a newer one with lower emissions. A maximum grant of €7,000 has been set.


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Finance Minister Edward Scicluna has begun the Budget 2021 speech in Parliament

New emissions testing will see some pay lower registration tax, road license