The Government says it has noted public concern about the pollution levy the Chief Minister announced in today's Budget. 

A statement continued: “Legitimate concerns have been raised with the Government about the effect of this measure on many vulnerable groups. The Government will therefore, look to reduce Gibraltar’s pollution levels from motor vehicles in a different way after deeper examination. 

“The Minister for Transport explained that the proposal announced this morning was designed to exempt pensioners, students, the unemployed and those on low incomes. 

“However, it may be possible to implement a different measure the details of which will be dealt with in a deeper consultation which will be commenced in a few weeks time. 

“This will look at the possibility of taxing cars over ten years old only when they are sold and the ownership has been transferred or when there are two or three such vehicles per household. 

“Further discussion will also take place on the category of person who could be exempt from the tax, or whether the levy should be on a sliding scale depending on the age of the vehicle. 

“The full consultation paper will be issued after the summer so that more people are in Gibraltar and able to respond. The levy will not progress as announced this morning.”