Maltese Federation Of Industry Complains Of Tax Pain But No Gain

by Robert Lee, Tax-News.com, London

13 September 2002

The Maltese Federation of Industry has complained that the jurisdiction is being forced to dismantle various protective levies without any immediate gain for Maltese industry.

In a statement released on Wednesday, the FoI stated its opposition to the pre-accession removal of the levies, arguing that the way in which the government has chosen to implement liberalisation of the food, beverage, and tobacco sectors will harm industry's chances of successfully restructuring:

'Local manufacturers do not even have the comfort of technical and financial assistance, whilst the EU has not as yet granted 'tariff-free' market access to Maltese industry on the same products...that have partly removed protective levies on competing imports from the EU,' the Federation explained, adding that:

'To aggravate matters further for Maltese industry, EU manufacturers currently exporting products to Malta that are similar to or substitutes for local food, beverage and tobacco products, obtain export subsidies from the EU and are able to lower the prices of their products in the Maltese market. As a result of the reductions of protective levies, these EU manufacturers will be able to intensify the unfair competitive edge they currently hold in Malta.'

The Federation of Industry also revealed that it is dissatisfied with the time frame established for the removal of the tariffs, announcing that: 'Until a few months ago the Federation was given to understand that the removal of levies with regard to certain products falling within the Agro industry would take place after accession to the EU.'

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