Yachts' lower VAT rate 'hypocritical'

Alternattiva Demokratika described the government's decision to lower VAT on yachts for a period of four months as socially unfair and hypocritical.

"The temporary decrease in VAT on yachts to five per cent appeases a privileged minority at a time when sacrifices are being expected from the rest of the population. While the average Maltese and Gozitan citizen will be charged a VAT rate of 18 per cent on far more essential services and products than yachts, a small minority will be benefiting from a temporary fiscal incentive," AD's spokesman for the economy Noel Agius said in a statement.

"A socially responsible government would have introduced a VAT system based on different rates through which luxury products like yachts would be taxed at a higher rate than more essential products and services.

"The government is doing the very opposite of this. Contrary to what social justice demands, for a period of four months VAT on yachts will be lower than that on more essential services or products."