Incentives for the use of renewable energy
Vehicle scrapping schemes
Grants will be awarded when one scraps a vehicle which has been in circulation for more than a decade, and which is replaced by a less polluting vehicle. The grant will vary depending on the emissions of the new vehicle and the highest grant amounts to seven thousand euro (€7,000).
Alternative transportation
The exemption from registration tax and from the payment of the annual road license on electric vehicles and plug-in electric vehicles for a period of five years from the date of first registration will be extended.
The special rate applicable to residential homes owned by individuals who have an electric vehicle and who charge their car overnight will remain in force.
Other schemes
The scheme awarding a full VAT refund on bicycles and electronic bicycles will be extended. The same applies to the scheme that incentivises the purchase of electric motorcycles, scooters and bicycles by awarding a VAT refund up to a maximum of €400.
A grant of €400 will be awarded to those who convert their vehicle to run on gas instead of fuel, if the reduction of the CO2 emissions of the vehicle is reduced by 25%. This scheme will also apply to all passenger and freight transport vehicles, in which case the grant will amount to a maximum of €800.
The annual license of motorcycles with a cubic capacity between 125cc and 250cc renewed in 2021 will be reduced from €65 to €25.
Vehicles used on public holidays and weekends
Vehicles which are registered with Transport Malta to be used solely on weekends and public holidays will benefit from a reduction of 35% of the annual motor licence.