Maltese Government Will Be Ready To Consider Tax Reform Options By June

by Robert Lee, Tax-News.com, London

14 February 2006

Maltese Prime Minister Dr Lawrence Gonzi has allayed fears that a sweeping tax reform initiative will be delayed while a government task force considers consultation submissions.

Addressing National Party supporters at a meeting on Sunday, Dr Gonzi suggested that the government could be ready to begin considering new proposals by June this year, shortly after the tax task force presents its report.

It had been feared that the Prime Minister would delay the tax reform proposals to give the panel of experts more time to review submissions from businesses and interested parties on the planned shake-up of the nation's tax system.

The review of the Maltese tax system is part of a five-year strategy announced by Dr Gonzi at the launch of a Pre-Budget Document last year, designed to improve Malta's overall economic competitiveness.

According to the Document, the government is hoping to change the taxation system so that: tax policy stimulates economic growth; the system is re-engineered from direct taxation to environment-related taxation; the regime promotes the uptake of the household rental market through tax incentives; and reporting requirements are further simplified to lower administrative costs.

The Document is one of three important documents which will guide government action in the coming years, the other two being the National Reform Programme which is intended to address Malta’s competitiveness in terms of the EU’s Lisbon Agenda, and the National Strategic Reference Programme, which will outline the strategic priorities for Objective 1 structural funds from the EU for the period 2007-2013.

Recommended