€4.8 million allocated for vehicle registration tax refund scheme

A scheme to refund vehicle registration tax for cars registered in 2006 will be opening today, with an announcement being published in the government gazette.

Transport minister Joe Mizzi said that €4.8 million will be earmarked for the refunds, with the government planning to have paid back all eligible motorists by the end of May.

"This is a continuation on our promise to give back to citizens the money that was stolen from them," Mizzi said, adding that this will be the fourth year in which such a scheme was made available.

Some 60,000 people are expected to benefit from this year's round of refunds, Mizzi said.

He added with this year's scheme, the government will have paid back roughly €14.5 million in refunds - €3.3 million in 2014, €2.3 million in 2015, and €4.1 million last year.

In 2014, the government announced that all persons who purchased a vehicle for personal use between 1 May 2004 and 31 December 2008 will receive an ex gratia payment.

The refund is of a portion of VAT that was charged not only on the cost of the car, but also on the registration tax payable on the car

Mizzi criticised the previous administration, who he said had been openly against the decision.

"They were against the proposal and said that if implemented it would increase the country's deficit. Not only has this not happened, but we also registered a surplus, something we haven't seen in 35 years," he said.