The ECJ found that the Maltese motor vehicle tax violates EU law
Case C-694/22 – Commission vs Malta | The European Court found that the Maltese motor vehicle tax violates EU law.
The European Court examined the regulation of the Maltese motor vehicle tax in this case. Since 2009, the Maltese legislature transitioned to taxing based on emissions, whereby, under the new system, the tax is levied not based on the engine capacity but on the CO2 emissions, taking into account the age of the vehicle and the mode of propulsion. However, for vehicles registered in Malta 2009, tax payment is still determined by the old system (i.e., based on the year of manufacture, engine capacity, and mode of propulsion).
Consequently, a discriminatory situation arose from 2009 onwards, where imported vehicles registered before 2009 were subject to higher motor vehicle taxes compared to similar vehicles registered domestically before 2009. According to the court’s standpoint, such regulation favors domestic vehicles over comparable vehicles imported from other member states, thereby infringing the principle of free movement of goods.
