Malta To Soften VAT Hike With Compensation
Maltese Finance Minister John Dalli is set to announce an increase in the rate of Value Added Tax in his budget speech next Monday, according to a recent report in The Times of Malta. However, it is thought that he will soften the blow with a one-off payment for employees.
The Times reported that the payment will be the equivalent of between 75 cents and Lm1 per week over the course of a year, with the payments to commence in March.
Whilst VAT rates will not be raised for the tourist industry, in order to maintain the island as a competitive destination, the Federation of Industry has warned that the expected 3% hike to 18% will damage Malta’s business and industrial competitiveness.
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