Malta Opposition Calls For Tax Changes

by Lorys Charalambous, Tax-News.com, Cyprus

24 October 2001

In view of the upcoming budget presentation Malta's Green Party in opposition, the Alternattiva Demokratika, has proposed that changes are made to Malta's tax system including a reform in Income Tax, the tightening of the 'polluter pays' principle, an amendment to VAT rates and a new tax on vacant property.

With regard to income tax, the Party is calling for the removal of many taxes on productive labour and for tax brackets to be altered to lessen the burden on middle-income families.

In addition the Party says the 'polluter pays principle' should be enforced which would see any financial operations which create pollution and waste being heavily fined. To complement this effort Alternattiva Demokratika wants to see an increase in the VAT rate on products that damage the environment and a decrease in the VAT rate on products that are environmentally friendly.

Finally, the Green Party has suggested that a land speculation tax be imposed on people whose properties are kept vacant, although summer residences should be exempt from the charge.

In a statement released by Alternattiva Demokratika, the Party said: 'The Budget should enshrine the principle of less taxation on those engaged in productive work. We also believe that the government should keep on clamping down on those who abuse social benefits and on those guilty of tax evasion.'

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