Maltese Business Group Slams New Eco Tax Proposals

by Robert Lee, Tax-News.com, London

15 July 2004

The Maltese small and mid-sized business association, the GRTU, has reacted angrily to the proposition of an ‘eco tax’, saying Malta’s small firms already carry a disproportionately high tax and compliance burden.

"The introduction of such a tax shows bad timing when one takes into account the country's slow rate of economic growth. The tax will be an added burden on small businesses,” stated director general of the GRTU, Vince Farrugia, on Monday.

“As things stand, the onus of complying with VAT, PAYE, SSC, sick and parental leave, bonus, employment contracts, recurring charges, the new Data Protection regulation, and endless bureaucratic requirements is increasingly pressing on the productive potential of private initiative,” the GRTU added.

The organisation believes that the desired revenue may be raised by the government through a restructuring of the existing system, without the need to resort to extra taxation.

In the budget speech, finance Minister John Dalli indicated that the eco tax will be levied on a variety of imported and locally-produced goods, including batteries, tyres, electronic appliances and oil-based products.

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