Cap. 368 Art. 8Rateofregistration tax and circulation licence fee. 

(1) Registration tax on M1, M2 and M3 vehicles shall be due on the registration value of a motor vehicle classified or provisionally classified under the Second Schedule, at the rate or in the amount specified against the respective category and in accordance with the criteria identified under each Schedule:

Provided that in respect of used M1 vehicles classified under the Second Schedule other than those classified under article

6(2) shall not exceed the residual depreciated tax value of an identical or similar motor vehicle on the Maltese market.

(2) Registration tax on N1, N2 and N3 vehicles shall be at the rates or amounts specified in the First Schedule.

(3) In respect of motor vehicles which are brought into Malta having been leased or hired from another Member State which are subject to the payment of a registration tax in terms of article 3(2), the registration tax payable shall be as provided in article 3(3).

(4) M1 motor vehicles with CO₂ emission levels equal to, or higher than two-hundred (200) according to NEDC standard or two-hundred and twenty (220) or higher according to WLTP standard, and having an emission level equivalent to the latest European Standard or latest European Standard minus one or latest European Standard minus two, and motor cycles with an engine capacity equal to, or higher than eight-hundred and one (801cc) which are to be registered for the first time, or are already registered as racing vehicles with the Authority in accordance with this Act, may be registered to be used on the road in Malta solely and exclusively on Fridays as from 18.00 onwards, Saturdays, Sundays, national holidays and other public holidays: Provided that registration tax on the said M1 motor vehicles and motorcycles shall be charged at the rate established in the Second Schedule.

(5) A circulation licence fee shall be due on the licensing of M1 motor vehicles and motor cycles registered in terms of sub-articles (3) and (4) at the full rate specified in the Fourth Schedule and every year thereafter.

(6) Where a motor vehicle registered in terms of sub-article (4) is used on the road on any day other than Fridays as from 18.00hrs onwards,Saturdays, Sundays, national holidays or other public holidays the registered owner of the said vehicle -

(a) shall immediately pay the full amount of registration tax which was due on the date of registration of the said vehicle were the vehicle to be registered to be used on the road on any day of the week, less the amount of registration tax already paid when the vehicle was registered if that was the case, and

(b) shall be liable to the penalties provided for in article 21(1): Provided that any person who without making use thereof, with regard to an M1 motor vehicle or a motor cycle which has been registered with the Authority for use on the road in Malta solely and exclusively on Friday as from 18:00 onwards, Saturdays, Sundays, national holidays and other public holidays, fails to keep such M1 vehicle or motor cycle garaged on any other day shall also be guilty of an offence and shall also be liable to the punishment stipulated in article 21(2a)

(7) Where the Authority receives a request for the use of a vehicle registered in terms of the provisions of sub-article (4) not to remain limited only to Fridays as from 18.00hrs onwards, Saturdays, Sundays, national holidays and public holidays, the Authority shall determine the value of that vehicle for the purpose of calculating the registration tax payable thereon and the registered owner or purchaser, as the case may be, shall pay sixty per cent of the amount of tax determined. The provisions of article 9(2) shall apply mutatis mutandis for the purpose of determining the value of the said vehicle at the time of valuation:

Provided that, in such cases where the registration value of the motor vehicle in question is higher than the registration value used for the purposes of calculating the registration tax payable when the said motor vehicle was first registered, the registration value used during first registration shall apply for the purpose of calculating the difference in the registration tax payable.

(8) A circulation licence fee shall be due on the licensing of a motor vehicle registered under this Act at the rate specified in the Fourth Schedule and every year thereafter: Provided that the owner of a motor vehicle shall be exempted from renewing the circulation licence thereof where that motor vehicle -

(a) is being held by the Police or Customs or the Authority or the Agency, or

(b) has been seized by a Court’s order, or

(c) has been stolen and the theft has been reported to the Police, or

(d) has been exported, or

(e) its owner is being held in jail or is serving a prison sentence; or

(f) its owner is hospitalised on a long-term basis or was suffering from a medical condition which prevented him from renewing the circulation licence thereof:

Provided further that such exemption shall cease once the vehicle is returned to the owner in respect of paragraphs (a), (b) and (c), or the owner leaves prison in respect of paragraph (e): Provided further that such vehicle shall not be driven on the road until the licence thereto has been renewed.

(9) Where an M1 motor vehicle, already registered by the Authority, is fitted with a new engine or its engine is fitted with a device in respect of which there is in force a certificate of conformity issued by the manufacturer, and thus qualify for reduced CO or particulate matter levels, that vehicle shall qualify 2 for a circulation licence fee applicable to those reduced CO or 2 particulate matter levels:

Provided that vehicle is covered by a reduced emissions certificate issued by an authorised examiner or an accredited testing facility. Provided further that where such motor vehicle had been registered with the Authority prior to the 1st January, 2009, it shall be classified under the respective cc of that engine and the appropriate circulation licence fee shall apply.

(10) Where a motor vehicle other than an M1 motor vehicle, is fitted with a new engine, that vehicle shall qualify for a circulation licence fee applicable to that engine’s cc.

(11) In the determination of the CO2 emission levels of any motor vehicle, the combined level of carbon dioxide standard shall apply.

(12) Whenever a discrepancy may arise between the applicable registration tax and, or the applicable circulation licence fee relative to any vehicle as a result of any difference between the computation of such tax and, or fee consequent to the application of the NEDC standard or the WLTP standard, the Authority shall apply such correctory measures as may be necessary in order to establish a uniform rate of tax or fee irrespective of the applicable NEDC or WLTP standard and to cancel out the discrepancy which would otherwise result.