Times of Malta Reports: The government is preparing to introduce a new policy that will offer drivers €25,000 if they give up their licence for five years, Times of Malta has learned. The initiative aims to reduce traffic congestion and encourage alternative transportation methods.
Under the scheme, car owners who have been driving in Malta for at least seven years will be eligible for an annual payment of €5,000 over a five-year period. If a driver decides to reclaim their licence before the period ends, they will be required to pay a penalty. The measure applies solely to passenger car drivers, excluding motorbikes, commercial vans, and other vehicles.
While the government intends for Maltese citizens to benefit the most, the scheme will be open to all qualifying drivers, regardless of nationality. Cabinet has already approved the proposal, though some details, such as the form of payment—whether cash grants or tax rebates—are still being finalized.
The initiative is part of a broader plan led by Transport Minister Chris Bonett to address Malta’s persistent traffic issues. More policies will be rolled out over the next 18 months, with the entire package expected to cost tens of millions of euros.
Malta’s traffic congestion has long been a concern. According to the National Statistics Office, as of last year, there were 445,711 registered motor vehicles in Malta, with private cars accounting for over 70% of them. This represents a 20% increase compared to 2014. Despite investments in road infrastructure and free public transport, traffic reduction measures have been limited.
The government has previously considered various solutions, including a metro system, congestion charges, and parking fees, but these ideas have not materialized. Offering a financial incentive for drivers to surrender their licences is a unique approach compared to the more common car scrappage schemes.
While policymakers acknowledge that this measure alone will not solve Malta’s traffic crisis, they emphasize that it is part of a larger strategy to reduce reliance on private cars. Other proposed initiatives include encouraging young people to delay obtaining licences, expanding ferry services, and introducing restricted-use licence plates. The government remains committed to implementing policies that promote behavioral change rather than punitive measures.
