Labour spokesmen slam higher departure tax

Malta Labour Party spokesmen Charles Mangion and Evarist Bartolo slammed the departure tax, saying it was harming the tourism industry and the economy.

Dr Mangion said the government was saying one thing and doing the opposite.

"Only last Saturday the Prime Minister presented a report in which it was said that the government should not balance its accounts by increasing taxes and, ironically, two days later the departure tax was introduced," Dr Mangion said.

Parliamentary Secretary Tonio Fenech reacted and accused the opposition of deception.

"The departure tax was announced in the last budget and was planned to be introduced in August. The way the opposition is speaking shows they found nothing to criticise in the document and have created an issue that has nothing to do with the said document," Mr Fenech said. He argued the document launched by the government speaks of a shift in taxation.

Dr Mangion said Air Malta was going through difficult times and workers had sacrificed a number of conditions. Yet the government had ignored the airline's objections to the departure tax and raised it just the same.

Mr Bartolo said studies by the European association of hotels and restaurants and travel agents showed that the tourism sector in Malta was among the highest taxed sectors in the EU and most of the expenses incurred by operators were government-induced.

Taxes have to be eased so that the sector and people's spending power improves, he said.

Mr Fenech rebutted arguing that the departure tax was only paid by people whose flight originated from Malta and did not affect incoming tourists.

"Here again, the opposition is speaking without checking its facts. I really doubt if the tourism sector is paying higher taxes here. Suffice to say that hotels pay just five per cent VAT," Mr Fenech said.