Labour's U-turn on VAT a vote-catching move - Dalli

Finance Minister John Dalli yesterday urged the electorate to realise that the Labour Party's U-turn on VAT was merely another futile attempt to win votes.

Mr Dalli laughed off Labour leader Alfred Sant's proposal to retain VAT while at the same time changing certain elements - without explaining what he had in mind.

"Let's be careful with this double-talk," the minister warned at a news conference.

Mr Dalli urged the electorate to analyse in detail the MLP's proposal, warning that Dr Sant was making vague promises in similar fashion to 1996. He said the MLP had capriciously wasted eight years viciously preaching against a just and fair tax, only to realise now it had no choice but to retain it.

"Why didn't Dr Sant wait four years in 1996 to decide what to do with VAT? Why did he lambast VAT till the very end? Why has he waited four years to make up his mind on what to many is an obvious decision? I expected a detailed report with the proposed changes, not vague words."

Mr Dalli said it had been highly irresponsible of Dr Sant to continue with his attacks on VAT in an attempt to create more antagonism among entrepreneurs and consumers and hinder the government from checking tax evasion.

"Now Dr Sant has had to swallow the poison he spread and bow his head to the best tax system," Mr Dalli said.

Mr Dalli said that during his political career, Dr Sant had always been on the wrong side of development, citing his U-turns on local councils and the liberalisation process as prime examples.

Asked whether the government was prepared to amend VAT, Mr Dalli said the government was constantly changing and modernising the system and would continue to do so in line with the needs of the economy.

The MLP said that through his criticism, Mr Dalli had confirmed he was determined to deprive the country of a better VAT system.

The minister wanted to deprive Maltese and Gozitan families and thousands of self-employed persons of the benefits of lesser tax burdens and bureaucracy. It was precisely this which the Labour Party was proposing for VAT, the MLP said.