Changes in vehicle registration tax, car scrappage scheme

Registration tax on Euro 5 vehicles is to be reduced by up to 30 per cent but there will be a rise of 10 per cent on the registration of Euro 4 vehicles, Finance Minister Tonio Fenech announced in the Budget speech this evening. Meanwhile, there will be a 12.5 per cent tax cut in commercial vehicles (N1). VEHICLE SCRAPPAGE SCHEME The vehicle scrappage scheme is being retained but reduced - the benefit will now be of €500 for those who scrap their old vehicle and buy a new one. The benefit was previously up to €2,000, but new car owners will now benefit from the lower registration tax on the Euro V vehicles. Mr Fenech also pointed out that for the first time, the scrappage scheme is being extended to commercial vehicles, also at the rate of €500. He said that registration tax on vintage vehicles of over 50 years is being removed. However the definition of vintage vehicles is being reduced to 30 years from 35 years, meaning no licensing costs for the owners, although they will be charged an €8 administration fee. MOTORCYCLES Registration fees are also being removed for motorcycles up to 250cc and there will be a 25 per cent reduction in the registration tax on higher powered...