The biggest financial subsidy package for transport ever

This year will be remembered as the year of the largest package of financial transport subsidies ever awarded by Transport Malta.

It is evident that road transport is the main contributor to air pollution, in particular the emission of air pollutants directly associated with road traffic.

Reducing emissions from road transport necessarily involves a series of measures addressing both demand and supply, such as: reducing the need for road travel in Maltese territory, transferring mobility to alternative modes of transport and the transfer of road mobility to mass transport transport, as well as alternative technological solutions to the current system of internal combustion engine (ICE). No single measure would suffice on its own.

The government recognizes that measures must be implemented now to reduce these emissions, and since 2013 Transport Malta has identified a number of measures that need to be implemented.

In this regard, Transport Malta has launched various incentive programs including cash grants to promote the adoption of electric vehicles. It should also be borne in mind that the grants offered are higher than those of other European countries.

The measures put in place are multiplying from year to year. Aid of between € 1,000 and € 13,000 is available for the acquisition of electric vehicles when deregistering an old conventional fuel vehicle (depending on the category of electric vehicle) and registering a new electric vehicle. or used. Incentives were given to both individuals as well as registered businesses and partnerships, local councils, registered NGOs, self-employed workers and cooperatives.

Electric vehicles do not pay registration tax and are exempt from the annual fee for the first five years. Companies can benefit from up to € 200,000 in cash grants. Electric vehicles are not charged for entry into Valletta (no CVA fees) and can be charged for free at government solar car ports.

Substantial funding of various kinds will also be necessary to invest in infrastructure, maintenance and operation of electric vehicle charging networks, vehicle fleet renewal and maintenance, public awareness and communication campaigns.

These financial incentives offered to Maltese families are provided in order to use more sustainable and efficient means of transport. Let us recall that this government is working hard on the subject of alternative transport, not only on the basis of these financial measures, but also through the incentives that we have taken and that we are still taking, including free public transport for many sectors of society, the liberalization of the fast ferry service for greater use of maritime transport, as well as the start of a direct route by sea and public transport between Cospicua and Tas-Sliema.

Work hard on the subject of alternative transport

These programs are the demonstration of a government respectful of the environment, which is committed to continuing to make a difference in order to achieve its main objective and to maintain European commitments. These subsidies will not force the general public to buy a new car, but they will provide an incentive and incentive to buy newer, cleaner vehicles.

A total of five grants have been awarded, which can be viewed and applied for on the Transport Malta website.

The five grants are based on programs that include:

Grant n ° 1

– Incentive program to allow the public to change car engine to have more vehicles running on auto gas.

Allocated budget: € 50,000 with a total of 160 vehicles converted to run at Autogas by the end of October 2021.

This measure will reduce emissions from road traffic. With this measure, a person can benefit from a subsidy of € 400 per vehicle of category M1 or N1 which is modified to be able to drive at Autogas. People who have modified their vehicle to drive at Autogas in previous years can apply for the scheme and also benefit from a 10 percent reduction on the annual driving license.

– Incentive program for the use of dual fuel systems on heavy diesel vehicles.

Allocated budget: € 200,000 with a total of eight vehicle conversions by the end of October 2021.

Another measure to reduce road traffic emissions: a person can benefit from a subsidy of € 800 when a heavy goods vehicle is equipped with this system, which results in a reduction in smoke emissions of at least 25%. Vehicle owners will also benefit from a 10% reduction on the annual driving permit.

Grant n ° 2

– Incentive program for the purchase of environmentally friendly vehicles.

Allocated budget: € 1.5 million with a total of 1,033 vehicles registered at the end of October 2021.

The purchase of new environmentally friendly M1 vehicles and the simultaneous disposal of old vehicles from the road are encouraged. The subsidy amounts to a maximum of € 1,500 awarded when purchasing a new M1 category vehicle and a subsidy of € 2,000 when purchasing a new M1 category hybrid vehicle, while canceling the registration of an old category M1 or N1 vehicle.

Grant n ° 3

– An incentive scheme for the scrapping of an old vehicle and the purchase of a plug-in electric or hybrid vehicle for individuals, local communities, NGOs and businesses.

Allocated budget: 4.6 M € with a total of 646 vehicles registered at the end of October 2021.

In the case of individuals:

• € 12,000 when registering a new M1 or N1 category electric vehicle when unregistering and scrapping another ICE M1, M2, N1 or N2 vehicle that is at least 10 years old. from its year of manufacture.

• To benefit from an additional € 1,000, the vehicle owner must register a NEW electric vehicle and scrap a motor vehicle (category M1 or N1) registered in his name in Gozo, aged 10 years or more before the year listed on the grant application, and which was already registered, parked or licensed with Transport Malta on their behalf before 11 October 2021.

• € 11,000 when registering a new M1 or N1 category electric vehicle without unregistering and scrapping an old ICE vehicle;

• € 5,000 when registering a second-hand electric vehicle in categories M1 or N1 which is not more than six months old from the date of first registration and does not exceed 6000 km on the odometer , when deregistering and scrapping another M1, M2, N1, or ICE N2 vehicle that is at least 10 years old from its year of manufacture;

• € 4,000 when registering a second-hand electric vehicle of category M1 or N1 dating less than 6 months from the first registration and not exceeding 6,000 km on the odometer, without un-registration and updating. the breakage of another ICE vehicle;

• € 3,000 when registering a second-hand electric vehicle in categories M1 or N1 which is not more than 36 months old from the date of first registration and does not exceed 15,000 km on the odometer, during the deregistration and scrapping of another M1, M2, N1, or ICE N2 vehicle which is at least 10 years old from its year of manufacture;

• € 2,000 when registering a used electric vehicle in categories M1 or N1 which is not more than 36 months old from the date of first registration and does not exceed 15,000 km on the odometer without unlicensing and scrapping another ICE vehicle;

• € 1,000 when registering a second-hand electric vehicle in categories M1 or N1 older than 36 months but not exceeding 72 months from the date of first registration.

In the case of local councils, NGOs, registered businesses and registered private companies:

• € 12,000 when registering a new electric vehicle in category M1 when unregistering and scrapping another ICE M1, M2, N1 or N2 vehicle that is at least 10 years old. from its year of manufacture;

• € 11,000 when registering a new M1 category electric vehicle without unregistering and scrapping another ICE vehicle;

• € 12,000 when registering a new electric vehicle of category N1, N2, M2 or M3 and deregistering and scrapping another conventional ICE M1, M2, N1 or N2 vehicle with at least 10 years from its year of manufacture;

• € 11,000 when registering a new category N1, N2, M2 or M3 electric vehicle without unregistering and scrapping another ICE vehicle;

• € 5,000 when registering a used electric vehicle in categories M1, N1 or N2 which is not more than six months old from the date of first registration and does not exceed 6000 km at counter, when deregistering and scrapping another M1, M2, N1 or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• € 4,000 when registering a used electric vehicle in categories M1, N1 or N2 which is not more than six months old from the date of first registration and does not exceed 6000 km on the odometer, without unlicensing and scrapping another ICE vehicle;

• € 3,000 when registering a used electric vehicle in categories M1, N1 or N2 which is not more than 36 months old from the date of first registration and does not exceed 15,000 km at counter, when deregistering and scrapping another M1, M2, N1 or N2 ICE vehicle which is at least 10 years old from its year of manufacture;

• € 2,000 when registering a used electric vehicle in categories M1, N1 or N2 which is not more than 36 months old from the date of first registration and does not exceed 15,000 km on the odometer, without unlicensing and scrapping another M1, M2, ICE N1 or N2 vehicle;

• € 1,000 when registering a second-hand electric vehicle in categories M1, N1 or N2 over 36 months but not exceeding 72 months from the first registration.

A demonstration of an environmentally friendly government

Grant n ° 4

– A scheme which covers the purchase of Pedelecs and Category L Vehicles.

Allocated budget: € 2.5 million with a total of 1,674 motorcycles and 275 VAEs registered at the end of October 2021.

In this program, two types of scholarships are offered: scholarship A and scholarship B. A “candidate” here refers to the person, the local council, the voluntary organization or the company.

Grant B:

• € 1,000 when a person registering an VAE or a new category L vehicle eligible for subsidy A withdraws from registration a category M1 or N1 vehicle at least ten years old from the year of its registration. manufacture; Where

• € 500 when a person registering an VAE or a new category L vehicle eligible for subsidy A withdraws from registration a category L vehicle at least ten years old from the year of its manufacture.

Grant n ° 5 – Purchase of wheelchair accessible vehicles for people with disabilities

This scheme is open to vehicles used for the rental or compensation of passengers. For this measure, a person can benefit from a subsidy of € 10,000 when registering a new vehicle of category M1, M2 or M3.

Allocated budget: € 300,000 with a total of 19 wheelchair accessible vehicles registered at the end of October 2021.

Gilbert Agius is Deputy Managing Director, Transport Malta