Malta Facing Long Road Of Taxation Reform

by Robert Lee, Tax-News.com, London

28 May 2003

European Union membership is just the first step in a long process to bring Malta into line with the taxation standards in more developed nations, Finance Minister John Dalli told the Maltese Institute of Taxation recently.

Dalli warned the Institute during a recent seminar that more must be done to ensure that differences in taxation do not open up gaps between member states and cause investors to favour one state over another. It is therefore vital to make improvements in Maltese taxation standards so that they compare favourably with international practices said Dalli.

This is likely to be a long and arduous process however, a fact pointed out by Institute president Edwin Vella, due in large part to the sheer complexity presented by the language of new tax legislation. As a consequence, Vella estimated that the transition period would not be completed for about ten years.

Mr Vella also reiterated earlier comments made by the Finance Minister in respect of double taxation and tax evasion where he also foresees new developments taking place. He also observed that Malta will have the opportunity to play an important role in the drafting of e-commerce and energy taxation, both of which are in their infancy.

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